NYC-based enterprise software company Infor announced last week it has received a fresh $1.5 billion investment from shareholders Koch Equity Development LLC (KED) and Golden Gate Capital.
A New Investment at the Right Time
The new investment brings the total raised by Infor to $3.5 billion, with $6.1 billion in debt. The new round is expected in-part to be used to pay down some of this debt. The latest round of funding also comes just two years after KED invested $2 billion plus cash in early 2017. According to the company statement, the new investment marks an, ‘important milestone as Infor considers a potential IPO in 2019 or 2020, subject to market conditions.’
Paying Down Debt
As stated, Infor plans to use a large portion of the investment to pay down some of its debt ahead of the company’s IPO. According to reports, the company plans to pay off $500 million in senior secured notes which are due in 2020, and another $750 million in senior secured cash pay notes due in 2021. With regard to this plan Infor CFO Kevin Samuelson remarked on an call to investors, “We expect this paydown, in combination with cash flows and estimated IPO proceeds, will provide Infor with leverage levels consistent with other successful IPOs over the past few years.”
According to the company statement, in the time Infor has partnered with KED and Golden Gate, the company has invested, ‘approximately $2.5 billion in product design and development over the last five years and delivered more than 475 new products, 1,870 integrations, and 20,700 industry features in its CloudSuite product line.’
Largest NYC-based Tech IPO Ever?
Currently, Infor has over 17,000 employees, and over 68,000 customers in 100 countries. The company generated over $3 billion in revenue in 2018 alone. Though the company will not comment on a valuation at this time, some analyst have stated an IPO valuation for the company could see the a value as high as $60 billion. If such a valuation is reached, it would mark the largest IPO for any NYC-based tech company ever.
Whether or not such a valuation at IPO will come to pass however, remains to be seen.