ERP market consolidates further
JUST as the dust was settling on the Intentia/Lawson takeover/merger, Infor announces it’s in the process of purchasing SSA Global for around $US1.4bn in cash.
The deal combines two companies that have carved out solid niches in the enterprise software market by acquiring other mid-market technology vendors to create broad portfolios of back-office business applications.
Both companies have made a habit of snapping up distressed software companies with loyal bases of legacy users.
Infor’s chairman and CEO, Jim Schaper, said that buying SSA Global will make it the industry's third-largest enterprise software provider, with annual revenue of approximately $US1.6bn.
“Infor has become a significant force in the industry by assembling and innovating market-specific, best-in-class enterprise software solutions, which provides customers with a flexible choice in the market,” he said.
The deal is squarely aimed at giving the combined company the bulk to fend off aggressive rivals like Oracle: "In a rapidly consolidating marketplace we have seen that size and scale matter," Mike Greenough, CEO of SSA Global, said.
12-Jul-2006