Infor Acquires MAPICS in $375 Million Deal

Combination creates sixth largest player in the enterprise resource planning market

Combination creates sixth largest player in the enterprise resource planning market

Atlanta — January 28, 2005 — Enterprise software company Infor Global Solutions continued its buying spree this week with the acquisition of MAPICS, a provider of enterprise resource planning (ERP) systems for mid-market companies, in a deal valued at about $375 million.

Under the terms of the agreement, Infor has agreed to pay $12.75 per share in cash to MAPICS shareholders. The plan has received unanimous approval from the MAPICS board of directors. The transaction is subject to closing conditions, including receipt of required regulatory approvals and MAPICS shareholder approval.

Infor, formerly known as Agilisys, focuses on delivering enterprise resource planning (ERP) and supply chain solutions for the manufacturing and distribution industries. By adding MAPICS' additional scale and reach, Infor said it would be able to expand its manufacturing solutions and increase its ability to compete globally.

Jim Schaper, Infor's chairman and CEO, said in a statement that his company is building its vertical market presence by pulling together best-of-breed solutions and industry knowledge. "MAPICS is a respected enterprise software provider that has been serving the manufacturing industry for over two decades," Schaper said. "The combined company has the scale and resources to continue to support our extensive customer base while investing in enhancements and long-term product innovation."

Infor has recently acquired Aperum, Brain, Daly.commerce, Future Three Software, Incodev, Lilly Software, Mercia Software, NxTrend and Varial, notes Bruce Richardson, an analyst with technology consultancy AMR Research. "The MAPICS deal adds clout to the company's presence in automotive and discrete manufacturing, and fills a void in the make-to-stock segment," Richardson wrote in a research alert after the deal was announced.

The deal also puts MAPICS global reseller network at Infor's disposal and expands Infor's geographic coverage from 45 countries to 70, including China, Japan, Indonesia and Malaysia, Richardson wrote, adding: "Prior to this acquisition, Asia accounted for only 4 percent of Infor's revenue. MAPICS also bolsters the company's presence in North America and Central Europe."

MAPICS has approximately 4,500 customers, bringing Infor's total client base to about 17,500. The combined company will have annual revenues of about $600 million, which puts it in sixth place in the ERP market behind SAP, Oracle, Sage-Best, Microsoft Business Solutions and SSA Global, according to Richardson, who predicted that Infor's buying spree will continue. "The company is always on the lookout for companies that fit within three broad categories: discrete manufacturing, distribution and process," the analyst wrote.

In the Infor statement on the deal, Dick Cook, MAPICS' president and CEO, said that with the current consolidation in the enterprise software industry, MAPICS viewed it as imperative to combine with another company to create a larger entity. "While our initial strategy was to grow through acquisition, the opportunity to be part of a much larger company while rewarding our shareholders presented an attractive alternative," Cook said.

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