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 and its Special Committee. The transaction is subject to certain closing conditions, including receipt of required regulatory approvals and MAPICS shareholder approval.
Infor focuses exclusively on delivering enterprise resource planning (ERP) and supply chain solutions that are designed specifically for the manufacturing and distribution industries. By adding MAPICS’ additional scale and reach, Infor will be able to expand its manufacturing solutions and increase its ability to compete globally. The combined company will have more than 17,500 customers in over 70 countries.
“Infor is building vertical market leadership by assembling proven, best-of-breed solutions and deep industry knowledge,” said Jim Schaper, Infor’s chairman and chief executive officer. “MAPICS is a respected enterprise software provider that has been serving the manufacturing industry for over two decades. 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. Both current and future customers will benefit from our exclusive focus on manufacturing and distribution and our world-class team of professionals with deep vertical expertise.”
MAPICS has approximately 4,500 customers and a team of dedicated employees
who will expand Infor’s expertise in the manufacturing sector. MAPICS’ strong affiliate and partner network will further enhance Infor’s ağabeylity to meet the needs of global manufacturers and MAPICS’ proven products will allow Infor to offer an expanded suite of solutions. Infor’s financial backing, global reach and additional product solutions will provide MAPICS’ customers with a path for continuous improvement and long-term growth.
Dick Cook, MAPICS’ president and chief executive officer, remarked, “With the industry consolidation currently taking place, it was imperative that MAPICS combine to create a larger company to help ensure the continued success of our customers. 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 added, “After a lengthy process, the MAPICS Board of Directors concluded that this was the right plan of action. We believe that Infor’s offer is a win for our shareholders and that it provides a long term future for our business.”
Infor International Limited, a wholly owned subsidiary within the Infor Global Solutions group, has signed a definitive agreement to acquire MAPICS, Inc., a publicly traded manufacturing applications provider headquartered in Alpharetta, Georgia. Terms of the acquisition include the purchase of all MAPICS capital stock for $12.75 cash per share. MAPICS currently has approximately 27.2 million shares outstanding on a fully diluted basis. The acquisition will be financed through equity capital to be provided by Golden Gate Capital and Summit Partners, Infor’s existing equity sponsors. Infor’s senior bank debt and subordinated debt will be refinanced by a syndicate of banks led by Lehman Brothers with Wells Fargo Foothill acting as syndication agent. SunTrust Robinson Humphrey is acting as the exclusive advisor to MAPICS in this transaction. Lehman Brothers Inc. and Wachovia Securities are acting as advisors to Infor.
Closing of the transaction, which is expected to occur early in the second calendar quarter of 2005, remains subject to certain conditions including, but not limited to, regulatory clearance and MAPICS shareholder approval.
Infor focuses exclusively on providing vertical specific, enterprise-wide business solutions to the manufacturing and distribution industries worldwide. Infor delivers best-in-class products that address the essential challenges our customers face in areas such as supply chain planning, relationship management, demand management, ERP, warehouse management, marketing-driven distribution, and business intelligence. For additional information, visit www.infor.com.
MAPICS is a leading global solutions provider focused exclusively on manufacturing. Building on more than 25 years of industry experience and proven success, MAPICS helps manufacturers be world class by gaining market share, operating at peak efficiency and exceeding customer expectations. MAPICS solutions include software-extended ERP, CRM and supply chain management – and professional services. The solutions are implemented on the two industry-leading technology platforms – Microsoft and IBM.