Somewhat overshadowed by the PeopleSoft/JD Edwards merger, Invensys has completed the offloading of Baan to SSA for the bargain price of $135 million.
Chicago-based SSA is owned by private investment firms Cerberus Capital Management L.P. and General Atlantic Partners LLC. The deal gives SSA more than 16,500 customers and combined annual revenues of $610 million, of which $160 million is from key software license sales.
SSA alone expects to bring in net earnings of $40 million on total revenue of $285 million for its fiscal year ending this month. "This acquisition represents a significant milestone in our ongoing growth strategy," said SSA President and Chief Executive Mike Greenough
The company has selected its executive vice president, Graeme Cooksley, to oversee the Baan unit, which it plans to restructure in a bid to return it to profitability. SSA competes directly with JD Edwards.
The closure of the deal also relieves Invensys of a significant financial burden, although the $135 million it gets is well below the $700 million it paid for the firm. “With the completion of the sale of Baan, we have made a good start to our disposal program, which will result in a sharper-focused, financially-stronger Invensys." Rick Haythornthwaite, Invensys chief executive.