Invensys takes control of Baan
Invensys, the UK engineering and IT giant, has finally taken control of the ailing software company Baan after shareholders in the Dutch outfit said they would tender their shares.
But Invensys will not gain control of the 95% of stock it aimed to acquire.
After other shareholders refused to budge the UK company has settled for 75% in a deal worth EUR262m (£162m).
A holding agreement has been formulated and will be in place until Baan shareholders vote formally to accept the Invensys offer. This is expected to be a formality.
The agreement comes at the end of a torrid time for Baan in which it lost substantial amounts, managed to launch new products and shareholders attempted to build refinancing packages. Baan will now become part of the Invensys Software and Systems – a division from which Invensys intends to make 10% cost savings.
Speculation has grown that at least 1,000 jobs would be lost at Baan if Invensys took over, but a worker’s council at the Dutch firm gave its backing to the bid all the same.
A spokesman said: ‘There is a feeling of excitement for our future prospects. The financial reasons for this were not very attractive but the strategic reasons are good.’