Infor Agrees to Sell its EAM Business to Hexagon AB and Form Strategic Relationship
NEW YORK – July 6, 2021 – Infor, the industry cloud company, today announced it has entered into an agreement to sell its global EAM (Enterprise Asset Management) business to Hexagon AB (Nasdaq Stockholm: HEXA B), a global leader in digital reality solutions, for approximately $2.75 billion USD 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 double-down on providing innovative, industry-specific 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.”
For more information on Hexagon’s acquisition of Infor’s EAM business, please see Hexagon’s announcement: https://hexagon.com/news/press-releases?page=/en/hexagon-acquire-infors-eam-business-and-form-broader-strategic-relationship-infor-and-koch
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 utilize 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, 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. LLC and Rothschild Inc. served as financial advisors, and Jones Day served as legal advisor to Infor and Koch.
About Infor EAM
Infor EAM is robust and scalable asset management software that helps leading organizations digitize and optimize maintenance operations to reach new levels of efficiency. This modern solution is built in industry-specific editions, such as facilities management, manufacturing, transportation, public sector, healthcare and retail, to help address unique challenges. Native mobile applications significantly improve field efficiency and users gain control and visibility of operating and maintenance costs, as well as energy consumed by assets, with a flexible, powerful, and proven solution. Infor EAM is a purpose-built asset management software that’s ready to scale and transform with an organization.
Hexagon is a global leader in digital reality solutions, combining sensor, software and autonomous technologies. We are putting data to work to boost efficiency, productivity, quality and safety across industrial, manufacturing, infrastructure, public sector and mobility applications.
Our technologies are shaping urban and production ecosystems to become increasingly connected and autonomous — ensuring a scalable, sustainable future.
Infor is a global leader in business cloud software specialized by industry. Providing mission-critical enterprise applications to 65,000 customers in more than 175 countries, Infor software is designed to deliver more value and less risk, with more sustainable operational advantages. We empower our 17,000 employees to leverage their deep industry expertise and use data-driven insights to create, learn and adapt quickly to solve emerging business and industry challenges. Infor is committed to providing our customers with modern tools to transform their business and accelerate their own path to innovation. To learn more, please visit https://www.infor.com/en-au.
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