(Bloomberg) -- Infor Inc., the business-software supplier run by former Oracle Corp. executive Charles Phillips, agreed to buy manufacturing-software maker GT Nexus for $675 million.
Infor, a closely held maker of manufacturing, government and health-care programs based in New York, is buying Oakland, California-based GT Nexus for its supply-chain management software that can be distributed and updated on the Web. Infor said in a statement Tuesday it expects to complete the purchase within 45 days.
The deal is part of Phillips’s strategy to compete with Oracle and SAP SE by letting customers leave elaborate business-management systems that run at headquarters untouched while supplying those clients’ plants with programs specialized by industry and delivered via cloud computing. GT Nexus makes software that manages production and shipments to stores for companies including Nike Inc., Adidas AG, Home Depot Inc. and Procter & Gamble Co., and their suppliers.
“This is postmodern ERP software -- instead of being for one company it’s for multiple companies,” Phillips said in an interview. “We go in where there’s fatigue and shelfware. It’s a big market.”
Infor, assembled through buyouts of software brands including Lawson Software, Epiphany and Baan, has overhauled products’ code and design to offer a cloud-computing suite tailored for select industries. Infor is held by private-equity firms Golden Gate Capital and Summit Partners and by its management team, and has $2.8 billion in sales and about $800 million in earnings before interest and taxes over the past 12 months, according to Phillips.
GT Nexus, Infor’s second-largest acquisition after Lawson, had about $150 million in sales last year and is profitable, Phillips said. Private-equity firm Warburg Pincus LLC own about 40 percent of GT Nexus, with its founders and management holding the rest, he said.
Phillips became CEO in 2010, weeks after leaving Oracle, where he ran sales, marketing and strategy for then-CEO Larry Ellison. On the same day Phillips resigned, Oracle appointed Mark Hurd president. Hurd is currently Oracle’s co-CEO with Safra Catz.
Infor has been eyeing a potential initial public offering for several years, and last month hired Jeff Laborde, a veteran of Goldman Sachs Group Inc., as chief financial officer.
Software makers including Oracle, SAP, Salesforce.com Inc., Infor and NetSuite Inc. are angling for a slice of growing spending by businesses on software delivered and updated via the Web, saving on hardware and labor costs.
Credit Suisse Group and Bank of America Merrill Lynch advised Infor on the deal, and Morgan Stanley advised GT Nexus.
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