Tuesday, September 11, 2007

Burp! That little piece of Syteline tastes like a bad mortgage!

In an interview with Managing Automation, Infor CEO Jim Schaper says they're going to take a little breather from gobbling up software companies. Sadly, it seems the formerly voracious PEGs who funded the takeover spree until now are now worried about the overall state of the debt markets.

It's not fair! Just because Capital One sent all those credit card applications to unemployed people, that doesn't mean we should stop rounding up ERP corpses! What's an ERP graveyard without fresh carrion? :(

Oh well. Schaper does say Infor will concentrate on "preparing the company for an initial public stock offering, which could take place within the next 12 months." That's when the PEGs will cash out, of course. And that gives me an idea.

We've heard similar rumblings from the other end of the spectrum, open source CRM startup SugarCRM. Sugar will do maybe $15 million in revenues this year, but is in a hot space and growing like kudzu organically. Infor will do $2.3 billion (with a B) - that's 153 times more.

Anyone want to bet which company goes out first?

And if you really want to place a bet, talk to me about comparative valuation ranges for the offerings. Comment away!

5 comments:

  1. Infor - Lots of Debt but more doubt

    Infor spent about $4 billion on 31 companies and 100+ old ERP programs.

    Now they aren't doing anymore aquistions due to debt markets and internal issues.

    One has to wonder how this announcement will effect R&D spending on all of these programs.

    One also has to wonder, what is Infor going to do with all of the products they now own. How are they going to address the fact that they have numerous overlapping products that overlap in functionality all focused on the same market.

    What will the future hold for all of these products? SOA or SOL?

    ReplyDelete
  2. Word from some Infor sources is that the company has classified some products as 'flagship' products.

    What does it mean to the Infor products that are not classified as a 'flagship' product?

    ReplyDelete
  3. To paraphrase the earlier respondent, they're Ship Out of Luck :)

    ReplyDelete
  4. Looks like our friends at Infor are hungry for more legacy ERP programs.

    http://www.ft.com/cms/s/2/3692b47a-cb4a-11dc-97ff-000077b07658.html

    ReplyDelete
  5. Anyone heard anymore about Infor buying Exact? Guess they changed their minds about the public offering. That will push any offering another 12 months!!

    ReplyDelete