Infor affiliate to acquire Lawson: Implication for manufacturers and distributors

ERP vendor Lawson has agreed to be acquired by GC Software Holdings, Inc., an affiliate of Golden Gate Capital and Infor. The cash offer of $11.25 US per share translates to a purchase price of almost $2 billion US. The transaction is expected to close in the third quarter of 2011.

Golden Gate already owns Infor – the third largest ERP vendor – and plans to integrate Lawson’s offerings into Infor’s software lineup. Earlier this month, Infor acquired SunSystems, a developer of financial management software.

Manufacturers and distributors running Infor ERP solutions stand to benefit from both of these acquisitions. Though strong in supply chain, manufacturing, distribution, warehousing and quality areas, Infor’s products had notable gaps in financial management and human capital management. The SunSystems acquisition is intended to fill the financial management gap, and Lawson the human capital management gap.

In the final analysis, Infor’s existing and prospective customers stand to benefit once Infor integrates the technologies and harmonizes the user experiences.

Jonathan Gross is vice-president of Pemeco, Inc., a consulting firm specializing in ERP selection and implementation. He can be reached at jonathang@pemeco.com. He regularly comments on ERP trends for Manufacturing AUTOMATION.