VC firm acquires
Geac for US$1bn

23 Mar 2006

Geac Computer Corporation has been acquired by Golden Gate Capital, a private equity firm focused on high-growth businesses in a transaction valued at US$1bn.

As part of the transaction Geac’s common shares will be de-listed from both the Toronto and NASDAQ stock markets.

Under the acquisition Geac has been reorganised into two separate Golden Gate Capital portfolio companies. Infor, an existing Golden Gate Capital funded company, acquired Geac’s ERP software products — including System21, RunTime, Ratioplan, StreamLine and Management Data — and the employees who support them moved to Infor.

Meanwhile, Geac’s core financial and corporate performance management applications provide the framework of a newly formed Golden Gate Capital funded company, named Extensity, that targets the integrated financial applications software market, including the high-growth Business Intelligence and Corporate Performance Management segments.

The transaction was financed through a combination of equity from Golden Gate Capital, cash on Geac’s balance sheet and firmly committed debt financing.

By John Kennedy