Lawson to Buy HR Software Co. Enwisen for $70M
St. Paul-based Lawson Software, Inc., announced on Monday plans to acquire Enwisen, Inc.-a Novato, California-based software-as-a-service provider for the human resources (HR) industry-in a $70 million cash transaction.
Lawson said that the acquisition will make HR services delivery a new focus of its human capital management system-which serves more than 1,000 customers.
“Companies want to transform how HR services are delivered to their employees, simplify these services, and reduce the costs associated with them,” Larry Dunivan, senior vice president of Lawson's human capital management products, said in a statement.
The company expects the deal, which is subject to customary closing conditions and approval by Enwisen's shareholders, to close by December 31. The agreement also includes a $5 million cash payment contingent on whether certain unspecified conditions have been met by June 30, 2012.
Privately owned Enwisen serves roughly 260 customers. Its suite of software helps companies improve the delivery of their HR services and lower costs, according to Lawson. “Lawson is committed to current Enwisen customers no matter what HR information system solution a customer is using,” the company said.
Lawson said in a press release that Enwisen has been a “strategic partner” since 2008-a relationship through which it has packaged and sold some of Enwisen's products to its own customers.
Lawson expects the acquisition to add about $8 million in revenue for the fiscal year that ends on May 31, while having no impact on earnings. The company projects that the deal will increase revenues by about $28 million to $30 million in the 2012 fiscal year-with a 2 cents increase in earnings per share.
Lawson is among Minnesota's 40-largest public companies based on revenue, which totaled $736.4 million in its most recently completed fiscal year.