Financial business software company Geac is to be acquired by a private equity firm which plans to create new businesses out of the assets. Geac is being acquired by Golden Gate Capital for around $1bn (£588m) and will be broken up.
Geac’s enterprise resource planning (ERP) software business, which makes up around a quarter of the firm’s $444m sales, is to be subsumed by the larger Infor Global Solutions, another Golden Gate company.
Infor is currently growing its share of the global ERP market through acquisitions. It recently acquired Mapics for about $350m.
Infor concentrates on the mid-market, focusing on manufacturing and distribution customers. As a result of the deal, Infor will pick up Geac software like System21, RatioPlan, Streamline and Runtime.
Around Geac’s remaining products, Golden Gate says it plans to form two new business operations under the umbrella of a new company.
One will be a financial applications unit focusing on Geac’s Enterprise Server, SmartStream, Extensity, Anael and Comshare products. The other will be an industry-specific applications group, serving sectors like local government and restaurants.
Golden Gate said it expects to complete the acquisition early next year, when it will provide more details about the new business structures.