Invensys plc and Baan Company N.V. announced May 31 that Invensys is offering $2.85 per share cash ("762 million) 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 plc and Baan Company N.V. announced May 31 that Invensys is offering $2.85 per share cash (“762 million) 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. Baan will likely join Invensys’ soon-to-be established Invensys Software and Systems (ISS, Herdon, Va.) division. The companies say ISS would be a global leader in manufacturing solutions, such as “Leanware” software and services, and would have approximately $2 billion turnover per year. Though Baan would retain its present name, location, and products, Invensys is planning to reduce costs by approximately $60-120 million per quarter by 4Q00. Invensys expects to incur restructuring charges of $400 million over an 18-month period from the date of acquisition. Invensys’ board believes its restructuring plan will return Baan to break even status within a year.
