Invensys Takes Control Of Baan - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Invensys Takes Control Of Baan

Faced with the reality of Baan Co. losing up to $1 million a day, British electronics and software company Invensys plc has taken control of Baan without acquiring the number of shares it originally wanted to own. Invensys said today that it's also immediately assuming responsibility for Baan's assets and liabilities, despite having acquired only 75% of outstanding shares, not the 95% the company had sought.

An Invensys spokesman says Baan was losing $1 million a day as Invensys waited for a group of 22 shareholders to tender their holdings--about 20% of shares. Rather than allowing Baan to reach a point where recovery was impossible, Invensys decided to act immediately, he says. Invensys will immediately begin financing Baan's operation, including customer support, sales and marketing, and software development, he says. The deal will formally close Aug. 15 at an emergency meeting of Baan shareholders at which Invensys, as the majority stockholder, will vote to give itself final control--including the power to liquidate any unneeded buildings or other assets. At that time, trading of Baan stock will likely be suspended by the Dutch stock exchange and the remaining 25% of shares will be purchased some time after that at Invensys' original offer of $2.65 per share.

Baan said last week that it expected to post losses of $85 million to $95 million for the second quarter of 2000, which ended June 30. The company reported net losses of $309.6 million for 1999. Many Baan shareholders are upset by the Invensys offer because their shares, which traded at more than $55 in April 1998, plunged to a low of $1.12 in May and recently traded in the range of $2 to $2.80. Invensys, which would pay more than $709 million for all Baan shares, had set a July 13 deadline for 95% of Baan shares to be tendered and extended the deadline before taking action today.

Baan interim CEO Pierre Everaert has estimated it would take more than $1.3 billion in cash to return Baan to profitability as a separate company. Once the deal is closed, Baan will become part of a new software division for Invensys, which manufactures electronics for manufacturing operations, as well as a line of enterprise resource planning software. The spokesman says Invensys has decided to continue using the Baan brand to market existing products and for new software offerings.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Commentary
Enterprise Guide to Edge Computing
Cathleen Gagne, Managing Editor, InformationWeek,  10/15/2019
News
Rethinking IT: Tech Investments that Drive Business Growth
Jessica Davis, Senior Editor, Enterprise Apps,  10/3/2019
Slideshows
IT Careers: 12 Job Skills in Demand for 2020
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/1/2019
Register for InformationWeek Newsletters
Video
Current Issue
Getting Started With Emerging Technologies
Looking to help your enterprise IT team ease the stress of putting new/emerging technologies such as AI, machine learning and IoT to work for their organizations? There are a few ways to get off on the right foot. In this report we share some expert advice on how to approach some of these seemingly daunting tech challenges.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll