Spending for the research and development of Baan NV's ERP (enterprise resource planning) software will not be cut and may be increased as a result of last week's acquisition of Baan by Invensys, the UK automation and controls group, said Bruce Henderson, the chief executive at the Intelligent Automation division of Invensys.
Invensys has offered to acquire Baan for $US709 million.
If the acquisition is completed in early August as expected, Henderson will head up the Invensys Software and Systems (ISS) division that will incorporate Baan. "If anything, we'll be increasing R&D," Henderson said in an interview this week. "This is a growth plan."
Henderson said he wants to bring Baan "to the break-even point in 12 months".
During the next six months, the Baan acquisition will make more sense because Invensys will unite the Baan ERP offerings with Invensys shop floor and related products, Henderson said. Declaring that ERP has "not delivered on the promise" of just-in-time ordering and manufacturing capabilities, he said that Invensys and Baan will provide results in this area.