Continuing to build a portfolio of ERP (enterprise resource planning) software through acquisitions, Infor Global Solutions on Thursday announced an agreement to pay US$216 million in cash to acquire Datastream Systems, a maker of asset performance management software.
Datastream has been in business nearly two decades and has a customer base of more than 6,700 organizations. Its software, including its flagship Datastream 7i, helps customers track and manage capital assets like manufacturing equipment, buildings and vehicle fleets. Infor has used acquisitions to assemble a portfolio of enterprise applications aimed at the manufacturing and distribution industry.
Datastream is a public company that had traded on the Nasdaq exchange, but it lost its listing in July after failing to file financial reports on schedule. The company has been investigating accounting deficiencies in its foreign operations, particularly in China. That investigation led to several restatements of past results and delayed Datastream's filing of required quarterly reports. Datastream's stock currently trades on the Pink Sheets (ticker symbol: DSTM.PK), a quotation system that tracks over-the-counter securities not trading on any of the major stock exchanges.
Datastream's shares ended trading Wednesday at US$8.79. Infor has agreed to pay US$10.26 per share, a 14 percent premium. Pending regulatory and stockholder approvals, Infor expects the deal to close in the second quarter.
Venture capital-backed Infor was created three years ago as an umbrella for an assortment of ERP software for customers in industries including life sciences, food and beverage, automotive and chemicals. Its recent acquisitions include specialist PLM (product life cycle management) maker Formation Systems and the ERP assets of Geac Computer.