Enterprise software firm Infor is selling to Koch Industries, the companies announced Tuesday. Financial terms of the deal were not disclosed. Koch Industries owned a $2.5 billion minority stake in Infor, and alongside Golden Gate Capital invested an additional $1.5 billion in the New York-based tech firm in January 2019.
At the close of the transaction, Koch Industries will own the remaining equity stake held by Golden Gate Capital and Infor will become a standalone subsidiary of Koch Industries. The company will continue to operate independently under its current management team.
For Infor, which is known for its industry-specific software suites, the Koch acquisition marks a sharp turn in the company’s trajectory. Under former CEO Charles Phillips, Infor was laying the ground work for an initial public offering, claiming broad investor and analyst interest. Infor’s IPO was expected be among the top 10 largest technology IPOs in US history, and the biggest ever for a New York City-based tech company.
Phillips stepped down as Infor CEO in August and was replaced with CFO Kevin Samuleson. With the Koch Industries buyout, all signs now point to a future in which Infor forgoes an IPO in favor of remaining private.
“Koch’s decision to acquire Infor is a strong endorsement of our product strategy and focus on creating innovative solutions for our customers,” Samuelson said in prepared remarks. “As a subsidiary of a $110 billion+ revenue company that re-invests 90% of earnings back into its businesses, we will be in the unique position to drive digital transformation in the markets we serve. We are rapidly expanding our industry-specific CloudSuites and offering customer experiences and outcomes that are well beyond what is standard in enterprise software.”