Koch Equity Development – the private equity arm of Koch Industries – is investing more than $2 billion (US) into Infor. The deal values Infor at more than $10 billion (US). As discussed here and here, Koch beat out rivals CVC Capital, Apax Partners, Blackstone and Advent International.
Reportedly, Koch will secure four seats on Infor’s Board of Directors.
What the deal means for Infor and its customers
Infor, in giving up a minority stake, retains control. Expect Infor to use the funding to accelerate the execution of its existing strategy, namely: the development of multi-tenant SaaS applications with specialized micro-vertical functionality.
For existing and prospective Infor customers, the deal should largely be viewed as good news provided that they’re happy with the company’s direction. They can sleep a bit easier knowing that there will be continuity in team, strategy and investment priorities.