Bob Scott reporting in his weekly Insights column.
Infor plans to by GT Nexus, which was described as the world’s largest cloud-based global commerce platform, for $675 million. Infor says the target has about 25,000 customers, including six of the top ten logistics service providers and 30 global financial institutions. Infor has acquired many companies over the years—this is the largest deal since it acquired Lawson for about $2 billion in 2011. GT Nexus had revenue of about $133.2 million in revenue for the year ended Dec. 31, 2014 and about $10 million in adjusted EBITDA. Infor expects to save about $8.7 million through cost cutting. The Nexus website says the company “fuses financial and physical supply chain control processes in a single, integrated application suite.” It integrates directly into the buyers’ and supplies’ order management system and Infor says it becomes the order management system for the entire network. You can see how this marriage might have come about. Sean Feeney, who has been CEO of GT Nexus since April 2012, was an operating executive for Golden Gate Capital from June 2010 until taking the CEO job. Golden Gate is the investment firm behind Infor and owns 78.3 percent of its stock with the remainder owned by Summit Partners. Nexus itself was a portfolio company of Warburg Pinc