This is big news. Especially for those that follow Baan (now SSA LX).
UPDATE 1-Infor to acquire SSA Global for about $1.4 bln
Mon May 15, 2006 10:09 AM ET
NEW YORK, May 15 (Reuters) – Infor, a portfolio company of private equity firms Golden Gate Capital and Summit Partners, said on Monday it will acquire SSA Global Technologies Inc. (SSAG.O: Quote, Profile, Research) for $19.50 per share in cash, or about $1.4 billion.
The deal represents a premium of about 25 percent to the $15.59 closing price of SSA Global shares on Friday. SSA Global shares were trading about 22 percent higher at $19.05 on Monday morning.
“With this acquisition, Infor will become the third-largest enterprise software provider in the industry with approximately $1.6 billion in revenue,” Jim Schaper, Infor’s chairman and CEO, said in a statement.
The transaction is expected to close in the third calendar quarter of 2006. SSA Global said stockholders representing 84 percent of its shares have agreed to support the merger.
“In a rapidly consolidating marketplace we have seen that size and scale matter,” said Mike Greenough, chairman, president and CEO of SSA Global. “This transaction brings value to all of our key stakeholders.”
According to Reuters data, SSA Global had 69.57 million shares outstanding as of Feb. 28, giving the transaction a value of about $1.4 billion.
A special committee of SSA Global independent directors was advised by Mayer, Brown, Rowe & Maw LLP and received a fairness opinion from Houlihan, Lokey, Howard & Zukin.
SSA Global was advised by Schulte Roth and Zabel LLP and J.P. Morgan Securities Inc. Infor was advised by Kirkland & Ellis LLP.