Lawson Software recently announced that it completed its acquisition of privately held Enwisen for $70 million.
The acquisition agreement also includes a contingent earnout payment of $5 million in cash if certain conditions are satisfied as of June 30, 2012.
California-based Enwisen is a leading software-as-a-service provider of human resource (HR) service delivery solutions to over 260 customers. The Enwisen AnswerSource HR Service Delivery suite helps companies transform and improve their delivery of HR services using fewer resources at lower costs.
Lawson expects that after adding Enwisen, HR service delivery will become a new strategic component of the Lawson Human Capital Management (HCM) System. This will provide Lawson with one of the broadest solution sets targeted at the HCM software market.
Enwisen has been a strategic partner for Lawson since 2008. After Lawson acquires Enwisen, the Lawson Human Capital Management system will include Human Resource Management, Talent Management, Workforce Management and the new component, HR Service Delivery.
Management believes that the acquisition supports Lawson’s growth strategy by adding a new set of proven products and services for customers in one of the company’s fastest growing markets. HCM is a significant component of Lawson’s business as more than 1,000 customers use Lawson’s Human Capital Management products. This market is the key market that Lawson is currently targeting with new solutions like Lawson Talent Management, Lawson Workforce Management and now HR Service Delivery.
Lawson estimates the acquisition will add approximately $8 million to the top-line. Excluding amortization of acquired intangibles, purchase accounting impact on revenues, integration and transaction costs, the acquisition will have no material impact on net earnings per diluted share (EPS) for fiscal year 2011.
For fiscal 2012, Lawson estimates adding approximately $28 to $30 million to the top-line and approximately two cents to the bottom-line in fiscal 2012. Lawson is scheduled to report results for the second quarter of fiscal 2011 on January 6, 2011.