Baan scores $75 million investment
The business software maker receives a $75 million equity investment from Fletcher International, along with an additional potential investment of as much as $150 million.
In all, the Netherlands-based company could receive up to $225 million from Fletcher over the next three years in exchange for common shares.
Fletcher paid $75 million to Baan for common shares, which will be purchased from August 1, 1999, through December 31, 2001.
Subject to certain terms, the additional potential investment of $150 million could be included in the deal over the next three years, the company said. For the nine months commencing October 1, 1999, Baan has the right to require Fletcher to purchase up to $75 million worth of additional common shares.
Fletcher has the additional right to purchase any unexercised portion during the remaining term of the agreement. Also commencing October 1, 1999, Fletcher has the additional right to purchase another $75 million in common shares.
Baan is still trying to recover from a tumble late last year when it posted a $32 million loss. It is also laying off about 20 percent of its staff and restructuring to regain profitability.