March 14, 2011 – Business application software provider Lawson Software Inc. is mulling an unsolicited buyout proposal of $1.8 billion from rival Infor Global Solutions and private equity firm Golden Gate Capital.
The non-binding offer would involve acquisition of Lawson’s outstanding common stock at $11.25 per share, according to a company news release. Lawson’s board of directors has retained financial advisors from Barclays Capital Inc. and continues to evaluate the deal, which was first offered late Friday, according to Lawson spokesperson Terry Blake.
Lawson stated in a news release that it has not made any determination to sell the company or engage in any other strategic transaction.
John Van Decker, analyst with Gartner, said there had been rumors Lawson was shopping itself, and that other enterprise resource planning providers may throw in acquisition bids. While Lawson has become more efficient and continues to bring in revenue, Van Decker says the company has had trouble dealing with its M3 software integration and aging S3 product.
“I think it has had trouble defining itself with its ever-changing [and] narrowing focus on industries over the past few years,” Van Decker says. “This could have been the desired outcome as it re-evaluated its strategy.”
Lawson provides business management and ERP software, maintenance and consulting in targeted industries such as health care, manufacturing and distribution, and consumer products. It is based in St. Paul, Minnesota.
Infor offers enterprise software solutions for customer relationship management, supply chain management and enterprise resource planning, competing with Lawson and other midrange providers. Golden Gate Capital is Infor’s parent company.
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