Quick Take: Infor and Golden Gate Gain Definitive Agreement To Acquire Lawson For $2B

Published on April 26, 2011 by R "Ray" Wang

New Firm To Focus On Verticals And Growth Markets

Golden Gate Capital and Infor entered an agreement to acquire Lawson at $11.25 per share.  The transaction is valued at $2B. Following the 7am ET press release,  a conversation with Charles Phillips and Duncan Angove highlighted key elements of the deal:

  • Focus on growth. Infor sees an opportunity to cross-sell products from both companies into the existing 75,000 customer install base.  Lawson’s HCM product line and Infor’s new release of Sun Systems Financials will provide the back office engine that was missing as independent companies.  The firm expects two-tier financials to be a growth opportunity.
  • Commitment to vertical differentiation. Infor’s trengths in distribution, manufacturing, and hospitality will complement Lawson’s core in healthcare, financials, equipment service rental, and public sector. Charles and Duncan both provided compelling examples of how products from both companies could be used to solve industry problems such as nursing shortage and asset management in healthcare. Time and attendance, planning, scheduling, and analytics would come together to solve a difficult customer problem.
  • Investment in integration.  The combined firm intends to focus on bringing applications together through integration.  Initial thoughts are to achive a common customer experience.  The engineering teams will begin with aligning ION to Lawson Process Platform. The goals – ensure that the common user experience layers are delivered adn bringing together common integration points.

More to come later in the day.

Your POV.

Does this announcement surprise you?  Are you a Lawson customer?  What do you think of an Infor takeover?  What do you hope Lawson will do? Add your comments to the blog or reach me via email: R (at) ConstellationRG (dot) com or R (at) SoftwareInsider (dot) com.

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Related Resources

20110314 A Software Insider’s Point of View – R “Ray” Wang “News Analysis: Infor Extends $1.84B Unsolicited Offer For Lawson”

20101025 A Software Insider’s Point Of View – R “Ray” Wang – “News Analysis: Charles Phillips Takes Over As CEO Of Infor”

20100422 A Software Insider’s Point of View – R ” Ray” Wang – “News Analysis: Lawson Puts Its Full ERP Suite Into The Cloud”

20090425 A Software Insider’s Point of View – R “Ray” Wang ” Event Report: Lawson Cue09″

20090313 A Software Insider’s Point of View – R “Ray” Wang “Friday’s Feature: Snapshots in Enterprise 2.0 UI/UX – Lawson Smart Office

Related Links

20110311 IDC News Service – Chris Kanaracus “Infor Makes Unsolicited $1.84B Bid For ERP Vendor Lawson”

20110314 Managing Automation – Chris Chiapinelli “ERP Shakeup: Infor Bids 1.8B To Acquire Lawson”

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Copyright © 2011 R Wang and Insider Associates, LLC All rights reserved.

  • Daniel – the new layer will probably be on Microsoft for now. However, Infor is better in a position to back IBM technology as backing MSFT is backing a competitor. – Ray

  • Clive – not much innovation in the market place among the large vendors. Their biz models have them going for fast follower status. Some are just slow joggers =) What do other folks think? – Ray

  • Ray @ Dynamics CRM 2011, Vancouver, I almost melted. Project Green is now Managed Solutions. Last May , Redmond moved to block SFDCs ingenuity. Definitely, LJE is repurposing Sun assets, maybe not to be left behind. I asked Larry @ EdZ ChC event (he ducked). Marc and Hasso debated same puck.

  • And the new experience layer is Infor Workspace or Lawson Smart office?

    What strategy would you expect there?

  • Daniel – Baan (LN) tends to be in larger shops. M3 targets smaller shops and departments. Both are older products. The long term goal is to keep those platforms alive with cross sold products that abstract the data and transactions into a new user experience layer. We’ll see if this strategy succeeds. – Ray

  • Product-wise, the real question is what will happen with M3 and LN (Baan). I do not see how these products complement each other. Both are manufacturing ERP products targeting almost the same markets.

  • Phil – the cloud computing boat was hard to move lawson customers to b/c they weren’t ready. Lawson customers tend to be more conservative. That being said, will Infor and Lawson customers be ready to embrace the cloud? What do you think? – Ray

  • Clive – The puck’s moving to scale. Will that leave ingenuity behind? – Ray

  • Good customer road-map.

    “skate to where the puck’s going, not where it’s been”

    Industry acquisitions boil down to who can build revenue scale to innovate and provision customizations in a SaaS architecture.

  • Lawson as a product won’t go anywhere. Oracle still supports PS apps nearly a decade after its acquisition. People still work on Integral applications and that’s been defunct for much longer than that.

    Lawson missed the boat on cloud computing, doing way too little way too late.

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