Infor makes unsolicited $1.84B bid for ERP vendor Lawson

Infor offers US$11.25 per share for Lawson

Lawson Software received an unsolicited buy out offer of US$11.25 per share, or around $1.84 billion, from rival ERP (enterprise resource planning) software vendor Infor.

Lawson confirmed the offer from Infor and its parent, private equity firm Golden Gate Capital, late Friday. A deal had been rumored all week. The offer price is slightly below the $11.55 per share Lawson's stock closed at on Friday.

Lawson did not provide the overall value of the deal. The $1.84 billion figure was derived from the total number of shares outstanding the company reported in its most recent quarterly earnings statement in January.

Infor, along with Lawson, is one of the industry's largest remaining ERP vendors after SAP, Oracle and Microsoft. Lawson reported $736.4 million in revenues during its fiscal 2010 and had a market capitalization of $1.89 billion on Friday.

Lawson has retained Barclay's Capital as an advisor on the potential deal, and "has not made any determination to sell the company or engage in any other strategic transaction," according to a statement.

It will not comment further on the possible acquisition until an agreement is finalized, talks are ended or Lawson's board completes a review of the offer, the statement adds.

Infor did not immediately respond to a request for comment. Last year, the company named former Oracle co-president Charles Phillips as CEO.

Phillips was known at Oracle for his key role in that company's long string of acquisitions over the past several years.

Rumors that Lawson would be sold have swirled since activist investor Carl Icahn took a stake in the company last year. Icahn is known for his tendency to push for changes in company strategy that he believes would benefit stockholders, including a sale.

The deal makes sense for Infor, as it gives the company inroads into verticals such as health care and human resources, said analyst Ray Wang, CEO of Constellation Research.

That said, "Lawson would be fine on its own as an independent company," as its CEO, Harry Debes, has done a solid job, Wang said.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris's e-mail address is Chris_Kanaracus@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags enterprise resource planningMicrosoftOraclebusiness issuessoftwareapplicationsInforMergers / acquisitionsLawson Software

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments

Brand Post

PC World Evaluation Team Review - MSI GT75 TITAN

"I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it."

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?