Filed under: Software
In Jul-03 Affiliates of Cerberus Capital Management L.P. (‘Cerberus’) and Global Atlantic Partners L.L.C. acquired Baan UK, Ltd., Baan U.S.A., Inc. and Baan Global B.V. (‘Baan’) from a subsidiary of Invensys plc (‘Invensys’) through their portfolio company SSA Global Technologies, Inc. (‘SSA’) for an aggregate purchase price of approximately US$130.1m (excluding US$2m in transaction costs). This implied a multiple of 48% of total revenues (US$273.6m) for the fiscal year ended 31-Jul-03. Over the same period Baan reported a negative EBITA of US$34.1m before a US$13.1m restructuring charge. Invensys acquired Baan Company N.V.’s business in Aug-00 for approximately US$700m (300% of total net revenues for fiscal year ended 31-Aug-00). The transaction was financed through subordinated debt. In relation to the Baan acquisition SSA reported US$50m in restructuring and exit charges that mainly relate to employee severance for a reduction of headcount by 800 and termination of office space leases. Including these charges the valuation implied a multiple of approximately 60% of total revenues.
