Stung by the worldwide recession and continuing consolidation in the enterprise software market, SoftBrands Inc., a $98 million provider of applications to small- and medium-sized manufacturers, has agreed to be acquired by Infor and Golden Gate Capital, its financing partner.
SoftBrands Friday said an affiliate of Infor and Golden Gate Capital will pay approximately $80 million for the company. SoftBrands expects the deal to close 60 to 90 days following release of a proxy statement and a vote on the proposed deal by SoftBrand’s shareholders. SoftBrand’s board of directors has already approved the deal.
“Size and scale matter in a consolidating software marketplace,” said SoftBrands President and CEO Randy Tofteland at a press conference called Friday to announce the deal. “For SoftBrands, it has been challenging to continue to operate in today’s consolidating ERP marketplace as a small company that has limited access to resources to fund growth.”
At the same time, he said, the recession has made it difficult for SoftBrands to remain profitable. For those reasons, Tofteland said, the acquisition is in the best interest of the company’s stakeholders.