Baan bailout

After seven straight losing quarters and four CEOs in less than two years, Baan has reason to celebrate. The London-based Invensys, a global leader in industrial automation and control, has agreed to purchase the Netherlands-based company., which develops software products for e-business, cutomer relationship management and enterprise resource planning. The reported cost is $708.7 million. Baan will continue to operate under its own name and maintain its current headquarters in Barneveld. Heading the company will be Laurens Van der Tang, formerly Baan’s executive VP of research and development.

Invensys plans an agressive restructuring program that will target breaking even 12 months and achieving 10% operating margins in 24 months. Invensys anticipates incurring $400 million in restructuring costs. Large-scale layoff are anticipated.

Invensys will leverage its own sales force to encourage cross-selling. Baan will continue its research and development programs but will place greater emphasis on integration with other Invensys software packages.

Coinciding with the Baan acquisition is formation of Invensys Software Services (ISS), into which Baan will be folded. The new division will have its headquarters in Herndon, VA. Heading the group will be Bruce Herndon, who previously lead Invensys’ Intelligent Automation group. ISS will be comprised of companies previously acquired by the IA group, including Foxboro, Triconex, APV Systems and Wonderware.