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Golden Gate Capital to Acquire Geac Computer Corporation for $1 Billion

    Online News published in DMReview.com
November 8, 2005

Golden Gate Capital, a private equity firm focused on investing in high-growth businesses in change intensive industries, and Geac Computer Corporation Limited announced that they have reached a definitive agreement for Golden Gate Capital to acquire Geac in an all-cash transaction valued at US$11.10 per share, or approximately US$1 billion, pursuant to a plan of arrangement.

Commenting on the transaction, Charles S. Jones, President and CEO of Geac said, "Today's announcement provides outstanding opportunity for all of our key stakeholders.   For shareholders, we have achieved an offered price of US$11.10, a per share value which represents a 27.0% premium over Friday's trading price and a 38.7% premium to enterprise value.  For our customers and employees, this proposed transaction and the resources available through it provide a long-term future for our business.  Geac has capitalized on its industry-specific focus and expertise in the Manufacturing, Government, Financial Services, Healthcare and Retail sectors.  Our vertical market success should be enhanced by the current initiatives and momentum within the Golden Gate portfolio." 

As part of the reorganization, Infor, an existing Golden Gate Capital funded company, will acquire Geac's ERP software products - including System21, Runtime, RatioPlan, Streamline, and Management Data - and the employees who support them will move to Infor.  As the largest provider of enterprise software exclusively focused on the manufacturing and distribution industries, Infor delivers integrated solutions that address the essential challenges its customers face in areas such as supply chain planning, relationship management, demand management, ERP, warehouse management, marketing-driven distribution, and business intelligence. Infor has more than 2,300 employees in 47 offices around the world and supports approximately 18,000 customers in more than 70 countries.

Geac's financial applications and the Industry Specific Applications (ISA) will become the two business groups under a newly formed Golden Gate Capital funded company, which will be named prior to the transaction closing and is referred to below as "NEWCO".  In addition, Geac's general and administrative staff, including the finance and accounting, legal, IT and human resources teams will provide the global general and administrative infrastructure for NEWCO.  The newly formed Financial Applications business unit under NEWCO will include the products and the employees who currently work within Geac's Enterprise Server, SmartStream, Anael, Extensity and Comshare products.  This business unit will target the integrated financial applications software market, and the combination of these solutions will become the foundation of a complete offering of integrated financial applications.  Geac's ISA businesses -CSD, Libraries, Local Government, Public Safety and Restaurants - will form the second business unit under NEWCO and will continue to target their current industries. Each ISA business will remain independent from the others in a structure similar to what exists within Geac today.  The CEO of the new company will be named prior to closing the transaction.

Jones also noted that one of Geac's largest shareholders, Crescendo Partners, has expressed its full support for this transaction and has agreed to vote in favor of the plan of arrangement.  Eric Rosenfeld, President and CEO of Crescendo Partners, is a member of Geac's Board of Directors.


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