Investors Acquire Geac
San Francisco–based investor group Golden Gate Capital has reached an agreement to acquire software firm Geac Computer Corp. Ltd. for $1 billion in cash.
Golden Gate is a private equity firm focused on investing in high-growth businesses in change-intensive industries. The group recently acquired Irvine, Calif.–based retailer Draper’s & Damon’s. Geac develops design and business management software for the apparel industry and others. Its clients include VF Corp., Tommy Hilfiger, Rip Curl, O’Neill, Wigwam and North Face.
As part of the agreement, which is awaiting shareholder approval, Geac will wrap all of its products under the umbrella of Infor, an Atlanta-based software company, which is also controlled by Golden Gate and has 2,300 employees in 47 states.
It’s not yet clear whether Geac’s products, such as Runtime ERP and Quest PLM, will be merged or offered as line extensions under Infor, said Alys Scott, Geac vice president of corporate communication.
Geac’s U.S. offices are based in Boston. Its world headquarters are in Markham, Canada. The company is traded on the Nasdaq and Toronto exchanges.
The impending deal should give the company long-term security, said Charles S. Jones, Geac chief executive officer and president, during a conference call announcing the deal.
“Geac has capitalized on its industry-specific focus and expertise in the manufacturing, government, financial-services, healthcare and retail sectors. Our vertical market success should be enhanced by the current initiatives and momentum within the Golden Gate portfolio.
“The unique combination of our business with several of Golden Gate’s software investments provides the extraordinary opportunity to deliver the greatest value to each and every stakeholder group,” he said. “Importantly, success in the software industry today derives from the strength of size and scale—the scale to invest in new products, in marketing and in a global sales force.”
David Dominik, Golden Gate managing director, said wrapping the company under Infor should help both entities grow faster and give Geac access to more diverse technology resources.
“The technology businesses we acquire are carefully selected based on their growth potential and ability to deliver vertically specific enterprise software offerings and deep market expertise to their customers,” he said. “Golden Gate Capital views Geac as a natural addition to this successful strategy.”
Scott added that existing apparel-industry customers should not see any immediate changes. “The plan is to continue to support the product and our customers.” —Robert McAllister
