Infor’s raising $1.5 billion, a prelude to an IPO?

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Infor has announced that it has received an investment of no less than 1.5 billion dollars (1.3 billion euros). The expectation is that the company will prepare itself for an IPO and that this will take place within 12 to 24 months.

The value of Infor is likely to be high as a result of this new investment: according to TechCrunch, an analyst assumes at least sixty billion dollars. Koch Industries’ investment business led this investment round together with Golden Gate Capital. This is in addition to the more than two billion dollars that Koch already invested in 2017. This brings the total to an investment of more than 3.5 billion dollars, on top of a debt of 6.1 billion dollars.

Paying off debts

In a statement about the investment, Infor states that it intends to use part of the one and a half billion dollars to pay off the debt. Among other things, Infor has to pay off a debt of USD 500 million by 2020 and wants to have it paid off as early as next month. There is also a $750 million loan to be paid off in 2021, which the company intends to repay in May.

The idea of the company is to reduce its indebtedness in this way before an IPO can take place. With this repayment, combined with cash flows and expected proceeds from an IPO, we expect that Infor will have an equal footing with other successful IPOs in recent years, explained CFO Kevin Samuelson during a meeting with investors.

More investments possible

Infor does not want to exclude that it will hold more investment rounds before it enters the market. At the same time, the company is planning to fully commit to an IPO. We’ve been talking for some time about the many benefits we think will come with Infor when the company goes public, says Samuelson. The idea is, among other things, that the brand is better known when it goes on the stock market, but also that it can offer more attractive conditions for employees and can provide a clearer financial picture for customers and investors.

By the way, Infor is already a big company: it has more than 17,000 employees and 68,000 customers in more than 100 countries worldwide. All these customers generated a turnover of three billion dollars in 2018. Among other things, it provides cloud software for CRM, ERP and supply chain management.

This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.