Beached Baan bows to buyer

So farewell then, Graham's Baan stories...

  • alert
  • submit to reddit

Top 10 endpoint backup mistakes

Invensys has confirmed that it has made an agreed all-cash offer for Baan of 2.85 Euros share, which values Baan at 762 million Euros, 474, or $708 million. The offer is recommended by both boards. Yesterday, Baan closed in Amsterdam at 2.62 Euros, giving a less than nine per cent premium, which is certainly considerably less than expected.

It will result in US investors who held shares yesterday making a loss. Trading was suspended yesterday afternoon on Nasdaq at the request of the company, when they were up 54 per cent to $4.19, which will result in US shareholders having a loss of $1.09/share.

The acquisition is far from unexpected - a rumour had been circulating for several days, and there was heavy overnight briefing.

The cash will be on the table in three weeks, and is expected to be approved by the Baan unions and Works Councils. Vanenburg Group, the investment vehicle of Jan Baan the founder and former CEO and his brother Paul Baan, will also sell its 5.9 per cent holding. Invensys has agreements for acquiring 11.1 percent of the Baan shares. The offer is conditional on Invensys getting 95 per cent of Baan's shares.

Invensys, which reports its annual results today, was formed by the merger of BTR and Siebe last February, and is headquartered in London. For the FY ending March 1999, its turnover was 6.55 billion. There are 100,000 employees in four divisions: intelligent automation; industrial drive systems; power systems; and controls. The objective of the company is to be the global leader in the automation and controls industry.

Baan announced it was selling its Coda Group for $49.3 million to UK-based Science Systems in March, less than a year after it had acquired the company.

Invensys faces a tough job in restoring Baan to profitability. It is setting up a new Invensys Software and Systems Division, which will have a value of around $2 billion. This will be managed by Bruce Henderson, who has been chief executive of Intelligent Automation at Invensys. Laurens Van der Tang, currently EVP of research at Baan, will become president. By Q4, Baan's costs will be reduced by $60 to $120 million per quarter, as part of a "rigorous restructuring and cost management programme". Invensys says it will incur restructuring charges of $400 million over 18 months.

Invensys CEO Allen Yurko sees the deal as a significant step to Invensys becoming an integrated software and systems provider across the entire automation and controls value chain. For Baan's part, interim CEO Pierre Everaert thought it was "an excellent outcome for shareholders, customers and employees".

That may not be a universal sentiment, however. The shareholders will remember the day when Baan shares were at 49 Euros, and the company was the second software company in Europe, on the heels of SAP. Many customers do seem to be keeping their Baan software, but are not upgrading much and must have been chewing their nails for most of this year. As for the employees, with the cost reductions envisaged, there will inevitably be some terminations, although Invensys has said that it will continue with all Baan's products and that it is committed to a strong research and development programme.

The Baan name will continue to be used, but many will be blaming Jan Baan's management style for the demise of the company. ®

A new approach to endpoint data protection

More from The Register

next story
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story


7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?