Hexagon in $2.75 Billion Deal to Buy Infor’s Software Unit

(Bloomberg) -- Swedish industrial group Hexagon AB has agreed to acquire Infor's global software business for about $2.75 billion on a cash and debt free basis.

Hexagon is buying the enterprise asset management unit, which typically combines software and systems to manage physical assets, for $800 million in cash and $1.95 billion worth of shares, according to a statement on Tuesday. The shares will be bought from Infor's parent, Koch Industries, while the cash component will be financed via Hexagon's existing debt facilities.

The deal sent the shares up as much as 4% at the start of trading in Stockholm, to a record high, according to data compiled by Bloomberg.

The decision to acquire the unit “is a strong endorsement of our mission to put data to work to enable autonomous, connected ecosystems,” Hexagon's Chief Executive Officer Ola Rollen said.

EAM solutions enable companies to monitor the condition and performance of fixed assets using so-called digital twins that replicate the asset in real time as a digital representation. They can be applied to a range of operational outputs including machines, trucks, roads and communications networks.

The Large Hadron Collider at CERN, the European Organization for Nuclear Research, is among machines built using Infor's EAM system, according to Infor's website.

“Adding an enterprise asset management system to our portfolio puts us in a unique position to drive further digital transformation across our customer base,” Rollen said.

Revenue from the acquired business is forecast at $184 million this year. The share-based part of the transaction price is paid with 132.6 million Hexagon series B shares at 125.73 kronor ($14.75) each.

Completion of the transaction is subject to regulatory approvals, which are expected to be completed during the fourth quarter.

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