Infor

Business Description
Infor is an industry specific provider of ERP software products (Top 3 ERP Vendor) to large and medium sized businesses that
perform various tasks including relationship management, asset management, resource planning, financial and human capital
management, performance management, supply chain management, warehouse management, etc. The company markets and sells its
software and services primarily through a direct sales force, systems integrators, and resellers. The company has 1745 partners in 41
countries with 1,680 support experts serving 73k customers. 12,700 employees across 153 direct offices. Headquartered in NY
 The company has been owned by Golden Gate Capital since its founding in 2002. In 3/11 Summit Partners bought a stake in
the company in 3/11 for 1.85b which was 13.5x EBITDA. How much Equity????
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Cap Table
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Positives
 EV coverage given 13.5x purchase multiple and
 Strong share in certain integrated verticals such as aerospace, high tech and pharma
 Recurring maintenance revenues make up 50% of total revenues
 Sticky customer base given difficulty/risks associated with switching away from ERP providers

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  Decent 4.5% FCF/Debt
 Strong liquidity with 522m of cash and 150m undrawn revolver
 No near term debt maturities with first debt coming due in 2020
 Vertical focus results in lower cost of total ownership than competitors
o This also allows for easier conversion and interoperability with cloud offerings as there is less required
customization of the software
 ERP software market expected to grow HSD% through 2020
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Negatives
 Very high leverage at 5.4x first lien, 8.3x opco and 9.3x holdco
 Weakening results with EBITDA declining 14-16 projected
o YTD 16 results down with EBITDA -11% PF and -7% CC
 Competes with significantly larger players in the ERP space such as SAP and Oracle
o Infor’s competitive advantage is using an industry specific approach vs a one size fits all approach used by larger
vendors that then needs significant changes and tailoring for that specific customers needs.
 Reputation risk with bad installs or product issues
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Thesis
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Catalysts / Possible Overhangs

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Recent Results
 Inline results with EBITDA of 176.5 vs 175 expected on Revs of 671 vs 675
 Product update and support fees -4.7% YoY (down 0.7% CC) to 349m
 Software licesnse fees and subscriptions +27.5% YoY (+31.5% CC) to 165m
o Partly due to GT Nexus acquisition but organic still up Mid teens %
 Consulting services nad other flat YoY (+6.2% CC) to 164m
 Higher SaaS subscription revenues offset by lower perpetual license revenues as the company shifts to higher mix of SaaS
and less product update and support
 Retention rates and customer reconnects continue to do well
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Segments and End Markets:

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Raw Materials/Commodity Exposure
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Acquisitions
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The Market/Market Share

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Company Strategy
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Management Team
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Legal/Regulatory/Environmental
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Historical EV/EBITDA, Price Graph and Holders

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Notes
 We generate most of our revenue through sales of the following offerings: (1) software licenses and software subscriptions;
(2) maintenance, which refers to our subscription-based services through which customers have access to product updates
and technical support for products they license from us; and (3) consulting services. We market and sell our software and
services primarily through a direct sales force, which is augmented by systems integrators and resellers.
  integrated enterprise business solutions, including customer relationship management, enterprise asset management,
enterprise resource planning (ERP), financial management, human capital management, performance management, product
lifecycle management, property management systems, central reservations systems, supplier relationship management, and
supply chain management, including business-specific inventory management, transportation logistics, manufacturing, and
warehouse management softwarexxxxxx
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Conference Call Notes

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