Invensys announced today that it has agreed to sell its Baan subsidiary to an investment group consisting of Cerberus Capital Management and General Atlantic Partners for $135 million. The sale proceeds will be used by Invensys to pay off debt.
Baan is a global supplier of enterprise application solutions and services to discrete manufacturers in the industrial machinery and equipment, electronics, automotive, aerospace and defence industries.
For twelve months up to 31 March, 2003, the business generated revenues of $265 million and an operating loss of $32 million. Net assets, including capitalised goodwill, are valued at approximately $120 million.
According to a statement, the sale of Baan is consistent with Invensys’ previously stated objectives to divest non-core assets as part of its overall plan to improve capital strength and increase strategic focus.
The transaction is subject to customary regulatory approvals and is expected to complete by the end of June 2003.