Cloud company Infor, a subsidiary of Koch Industries, has entered into an agreement to sell its global enterprise asset management (EAM) business to Hexagon AB, a digital reality solutions provider, for around $2.75 billion USD in a combination of cash and stock.
The companies have also agreed to form a strategic relationship in a move they say is to better serve shared customers. The businesses will remain separate until the completion of the transaction, subject to regulatory approvals.
Moreover, Koch Equity Development, another subsidiary of Koch Industries, is building a strategic relationship with Hexagon. As a result of the transaction, Koch also will have an ownership stake in Hexagon.
As the EAM market evolves from traditional asset management to asset performance management (APM), customers need broader solutions to manage the full lifecycle of their assets, from design and build, to operations.
The divestiture and strategic relationship positions Infor to combine its EAM technology with Hexagon’s digital reality solutions, including sensor, software and autonomous technologies, to produce a better outcome for customers. I addition, it will enable Infor to further focus on its strategy of delivering industry-specific cloud ERP suites.
Kevin Samuelson, CEO of Infor, calls th deal a win-win for Infor and Hexagon, as well as its customers and employees.
“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.”
“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,” adds Ola Rollén, Hexagon president and CEO.
Infor says its partners are an extension of its sales organisation, offering sales, services, support and expertise in its product portfolio. Infor partners in SA include Accenture and Deloitte.
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