Lawson Software to merge with Swedish firm
- By William Welsh
- Jun 02, 2005
Lawson Software Inc. and Intentia International AB will combine in an all-stock transaction valued at $480 million, the companies announced today.
Under the agreement, Lawson will issue about 81 million shares of its common stock to finance the transaction.
The deal is expected to result in Lawson's stockholders owning about 57 percent and Intentia's stockholders owning about 43 percent of Lawson. This is based on Lawson capital stock and Series A and Series B Intentia capital stock.
The boards of directors for both companies have approved the merger, which is expected to close by Dec. 31.
The company will operate under the name Lawson Software with U.S. headquarters in St. Paul, Minn., and international operations based in Stockholm.
The merger will create a new company with more than 3,500 employees serving about 4,000 customers in 40 countries with business applications for services, manufacturing, distribution and maintenance sectors spanning multiple industry categories.
The combined company will serve medium and large organizations including the government with a product portfolio that encompasses all core enterprise resource planning, performance management, supply chain and asset management applications.
Lawson's products focus on financial, human resources, procurement and retail, while Intentia's focus on manufacturing, distribution and maintenance applications.
Richard Lawson and Romesh Wadhwani will serve as cochairmen of the company.
Harry Debes will join Lawson as its new president and chief executive officer on June 15. He will replace Jay Coughian, who resigned from the position and will leave the company after a brief transition period.
Lawson has annual sales of $364 million, while Intentia has annual sales of $406 million.
William Welsh is a freelance writer covering IT and defense technology.