Posts Tagged ‘Epic Systems’

News Analysis: Lawson Software Closes Healthvision Acquisition for $160M, Deepens Healthcare Specialization

Lawson Acquisition Brings Healthcare Focused ERP To Last-Mile Patient Management Solutions

On January 11th, 2010, Lawson Software announced it had closed a $160M all cash offer for Healthvision, a healthcare software solution headquartered in Dallas, TX.  The deal continues Lawson’s deep commitment to industry verticalization and is notable because the deal:

  • Expands Lawson’s vertical footprint in the healthcare industry. Lawson currently plays a significant role in the ERP (i.e. financial and human resources) side of healthcare with an estimated 33% market share at hospitals with 250 beds or more.  Healthvision plays a complementary role in integrating patient information, enabling the growing healthcare information exchange (HIE) market, and delivering patient care systems for the Canadian market.

    Point of view (POV): Operational and clinical data often remain scattered in most healthcare organiztions.  With cost savings and compliance top of mind, the Cloverleaf Integration Suite from Healthvision provides a cost effective web services/SOA approach to integration.  Users often use Cloverleaf to replace the numerous manual point-to-point integrations.  This vertical specialization will place Lawson as an industry expert in integrating business (i.e. ERP) with patient care (i.e. clinical systems).   As a result, Lawson will extend its vertical barriers to entry among competitors.

  • Enables Lawson to enter the HCIT market. Healthvision boasts 800 customers in 3000 healthcare facilities worldwide.  The Medisuite solutions focus on patient management solutions for revenue cycle, clinical care, and data access.  The Cloverleaf healthcare data integration solution remains the defacto standard in the provider space.  Successful passage of the healthcare reform bill will lead to increased demand for HIE’s.

    POV (revised 2:oo pm 1/12/2010). : While the Medisuite acquisition may put Lawson directly in competition with some HCIT vendors such as Epic, Meditech, and Siemens in Canada, the goal is to serve as a supplier or glue to clinical vendors on the integration front.  HCIT’s traditionally have had very proprietary systems that were hard if not impossible to integrate.   Lawson has an opportunity to be the “Switzerland” in the integration market.  However, if Lawson can adapt MediSuite for the US market, the acquisition will give Lawson a significant accretive growth platform in cross-sell opportunities for an estimated $30B healthcare market opportunity.  Expect Cloverleaf to be used to dislodge clunky and proprietary integration tools from existing competitors.

  • Provides a significant accretive growth platform. Lawson expects the HealthVision acquisition to bring $60 to $70M additional revenues.  The M&A falls in line with Lawson’s concerted effort to focus on five key target markets that include fashion, food and beverage, equipment service and rental, public sector, and healthcare.

    POV: Over 60% of Healthvision’s revenues are recurring.  This provides Lawson with a steady cashflow as the vendor trends towards $1B in revenues milestone.  Changes in US healthcare policies benefit Lawson in reaching its goals.

The Bottom Line For End Users – Expect More Vertical Focus

Lawson users can expect additional investments in vertical solutions in the next 2 to 3 years.  Expect Lawson to continue investing in the Healthvision products with improved integration to Lawson S3.  Existing customers should seek an understanding of the future product road maps and time frames for completion.  Customers can expect Lawson to be active in cross-sell opportunities.

Your POV

Are you a Healthvision or Lawson customer in healthcare?  Always curious to your customer experiences.   What do you think of this acquisition? Please post or send on to rwang0 at gmail dot com and we’ll keep your anonymity.

Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.

Wednesday’s Whispers: Corporate Whispers and Monthly Market Trends – June 2009

Starting this month, we’ll be splitting the trends in Corporate Whispers from the People Whispers series.  Catch the latest monthly random thoughts, trend points, and corporate trends.  Hearing from twitterati, software execs, and industry experts about:

User trends

  • Recent win by SUSEN Software over SAP enhances validity of the used software market in the EU.  Other players like Used Software have battled Microsoft to open up competition in the market.  Many CIO’s hope that Nellie Kroes at the EU will investigate the lack of third party maintenance options and anti-competitive behaviour in some segments of enterprise software (i.e. Oracle DB, SAP, etc.) before her term expires.
  • Hybrid deployment options continue to gain ground.  Conversations with over 101 software decision makers highlight a shift from single source vendor strategies.  Move to support hybrid deployments benefit enterprise service bus and integration providers such as Boomi, Pervasive, and Informatica.
  • Japanese CIO’s finally realizing that they need to break free from their existing ERP software vendor relationships.  SaaS options now in consideration.  Recent advancements by NTT to host Zoho, Siemens’ 420K employee move to Success Factors, and Flextronics 240k employee deal with Workday have shifted perception that SaaS can’t solve large enterprise requirements.
  • Conversations with over 100 EMEA decision makers show a big push to move away from a single source vendor strategy.  Third party maintenance, virtualization, SaaS, Open Source, and BPO top lists of planned initiatives in 2009/2010.
  • Support for Apple Macs in corporate environments gaining significant traction.  Despite shipment gains, lack of real corporate support models (i.e. go to the Apple Store to fix your MacBook) do not engender the backing of corporate IT support departments.

Software vendor and system integrators trends

Your POV

Got a scoop or something to share? What are you hearing in the market?  Please post or send on to rwang0 at gmail dot com and we’ll keep your anonymity.

* Not responsible for any factual errors or omissions.  However, happy to correct any errors upon email receipt.

Copyright © 2009 R Wang. All rights reserved.