Invensys has made a offer to purchase the entire issued share capital of Baan valuing the company at £474 million. Baan shareholders will be invited to tender their shares in three weeks and the company will continue to operate under the Baan name.
Baan will retain its headquarters at Barneveld in the Netherlands but will form part of a new Invensys Software and Systems division (ISS) to be based at Herndon, Virginia in the US.
Invensys plans to implement a rigorous restructuring and cost management program under which costs will be reduced by approximately $60 million to $120 million per quarter by Q4 2000.
Commenting on the Offer, Allen Yurko, Chief Executive Officer of Invensys, said: ‘This acquisition is a significant step towards our stated goal of becoming an integrated software and systems provider, offering technical solutions across the entire automation and controls value chain. Baan is an excellent fit with Invensys’ existing software and systems businesses and the acquisition of Baan and integration into ISS will create a leader in the business applications solutions field with a strong focus on the manufacturing and industrial sectors.’