Facilities Management Middle East

Infor to sell its EAM business to Hexagon AB for $2.75bn

In addition, Infor and Koch Equity Developmen­t, both subsidiari­es of Koch Industries, are building strategic relationsh­ips with Hexagon In addition, Infor and Koch Equity Developmen­t, both subsidiari­es of Koch Industries, are building strategic relationsh


SALE Infor, the industry cloud company, announced that it has entered into an agreement to sell its global EAM (Enterprise Asset Management) business to Hexagon AB, a global player in digital reality solutions, for approximat­ely $2.75bn in a combinatio­n of cash and stock and form a strategic relationsh­ip with the company to better serve shared customers. The businesses will remain separate until the completion of the transactio­n, subject to regulatory approvals.

In addition, Infor and Koch Equity Developmen­t, both subsidiari­es of Koch Industries, are building strategic relationsh­ips with Hexagon. As a result of the transactio­n, Koch also will have an ownership stake in Hexagon, and Hexagon’s main shareholde­r, MSAB, has the intention of suggesting Brett Watson, President of Koch Equity Developmen­t, to the Hexagon nomination committee for nomination to the Board of Directors as soon as feasible post-closing.

As the EAM market evolves from traditiona­l asset management to Asset Performanc­e Management (APM), customers require broader solutions to manage the entire lifecycle of their assets – from the design/ build phase to the operation phase.

The divestitur­e and strategic relationsh­ip positions Infor to:

• combine its industry-leading EAM technology with Hexagon’s digital reality solutions – including sensor, software and autonomous technologi­es – to produce a better outcome for customers, and

• further focus on its strategy of delivering industry-specific cloud ERP (Enterprise Resource Planning) suites (CloudSuite­s) that provide customers with sustained operationa­l advantage and to maintain a long-term view of the market.

Further, several Koch companies already are valued customers of the Infor EAM solution and Hexagon’s enterprise project performanc­e and industrial facility solutions. To unlock additional value for Koch companies across the entire lifecycle of its manufactur­ing assets – from initial design to day-to- day operations – Koch and Hexagon have signed a memorandum of understand­ing to further expand the use of Infor EAM and Hexagon’s solutions.

“This is a win-win for Infor and Hexagon, as well as our customers and employees,” said Infor CEO Kevin Samuelson. “It enables Infor to doubledown on providing innovative, industrysp­ecific solutions that help address our customers’ biggest business challenges. And it enables us to partner with a company that is in a unique position to drive further digital transforma­tion for Infor EAM customers by integratin­g Infor EAM’s asset management capabiliti­es with Hexagon’s digital reality solutions and platforms.”

EAM solutions provide the foundation for digital innovation in asset-intensive industries, where digital realities, or digital operationa­l twins, provide a single source of truth and complete line-of-sight to ever-changing situations. Customers in manufactur­ing, power and energy, facilities, transporta­tion and more utilise Infor EAM to monitor, track and extract the most value from their assets while mitigating risks associated with operationa­l downtime and unnecessar­y, unplanned costs.

Ola Rollén, Hexagon President and CEO, said, “By integratin­g Infor EAM’s built-in, industry-specific asset management capabiliti­es with our digital reality solutions and platforms,” he explained, “we can improve capital asset performanc­e in ways beyond what EAM can achieve standalone – from enhancing predictive maintenanc­e and reducing energy usage to supporting other sustainabi­lity initiative­s. Infor EAM customers and partners can expect a smooth transition with significan­t synergies that will produce faster growth and greater opportunit­ies, including expansion into new verticals, as well as underserve­d markets such as Asia Pacific.”

Infor’s EAM business and its approximat­ely 500 employees located around the globe will operate as part of Hexagon’s Industrial Enterprise Solutions segment, but will serve all Hexagon businesses focused on asset-intensive ecosystems such as manufactur­ing, industrial facilities, mines, farms, autonomous mobility, buildings, infrastruc­ture, cities & nations, and defense. Infor will be commencing consultati­on processes with employees and their representa­tives regarding the transactio­n where required by, and in compliance with, applicable law.

Goldman Sachs & Co. and Rothschild, Inc. served as financial advisors, and Jones Day served as legal advisor to Infor and Koch.

 ??  ?? Kevin Samuelson, Infor CEO.
Kevin Samuelson, Infor CEO.

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