Caught the following news release today. Looks like Baan found a buyer. Invensys has been acquiring like crazy for last couple years. I run into them and their acquisitions a lot in the process automation field. Use to be Siebe but when they merged with BTR (British Tire and Rubber) they came up with a new name, Invensys.
Invensys moves to acquire Baan
London; Barneveld, The Netherlands; and Herndon, Va.?Invensys plc (London) and Baan Company N.V. (Barneveld, The Netherlands) announced May 31 that Invensys is offering $2.85 per share cash (762 million Euro) to acquire Baan. The boards of both companies are recommending the move.
Planned restructuring of Baan and formation of a new Invensys software business were announced along with the offer. Invensys is parent to more than 75 companies in automation, controls, and sensing, including Action Instruments, Barber-Colman, BTR Metering, Eurotherm, Foxboro, Lambda Electronics, Limitorque, Triconex, Wonderware, and Worcester Controls.
Invensys segments its business operations into four key areas: Industrial Drive Systems; Power Systems; Controls; and Intelligent Automation, which currently includes the existing Invensys software and systems businesses.
Invensys says the move aims to "ensure that it remains well positioned to serve the technological needs of its customers by providing complete automation solutions with the capability to provide management from 'Sensor to Boardroom' solutions and to web-enable its customers? business processes." Other major acquisitions include Foxboro, acquired in Sept 1990, Wonderware, acquired in April 1998 and Marcam, acquired in July 1999. Other software businesses in Invensys? portfolio include Simulation Sciences, Triconex, Eurotherm and APV Systems Division.
Invensys is forming Invensys Software and Systems division ("ISS") of which Baan would be a part. The companies say ISS would be a global leader in manufacturing solutions, providing "Leanware" software and services. The combined division would have annual turnover of approximately $2 billion. The headquarters of ISS is planned in Herndon, Virginia.
ISS would be run by Bruce Henderson, currently the division Chief Executive of Intelligent Automation. Laurens Van der Tang, currently Executive Vice President of Research and Development at Baan would become President of Baan upon closing. Baan would continue operating under the Baan name and expects to continue to compete in the open market with the full range of Baan products. Barneveld, in The Netherlands, would remain the headquarters of Baan.
To restore Baan to profitability, Invensys plans to instigate a rigorous restructuring and cost management program under which costs will be reduced by approximately $60 million to $120 million per quarter by Q4 2000. Invensys expects to incur restructuring charges of $400 million over
an 18 month period from the date of acquisition. The Board of Invensys believes that implementation of its restructuring plan will return Baan to break even within 12 months.
Invensys says its experience in successfully turning around software companies reinforces its confidence in the restructuring plan. Invensys says it is committed to a strong research and development program at Baan and the full suite of Baan Products.
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