Lawson Software
Lawson
Infor
Golden Gate Capital

Enterprise Software Maker Lawson Bought By Golden Gate, Infor In $2 Billion Deal

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Daily Crunch: Looming Edition

Lawson Software, a global provider of enterprise software, this morning announced that it has signed a definitive agreement to be acquired by GGC Software Holdings, an affiliate of private equity investment firm Golden Gate Capital and Infor.

The transaction has a total value of approximately $2 billion.

Lawson Software provides business application software, maintenance and consulting to customers primarily in specific services, trade and manufacturing/distribution industries.

The company was founded in 1975 and boasts offices in St. Paul, Minnesota and in both Europe and Asia.

Under the terms of the merger agreement, stockholders of Lawson will receive $11.25 per share in cash, a premium of about 14 percent to Lawson’s closing share price on March 7, 2011, the last trading day prior to news reports speculating about a potential deal brewing.

The purchase price represents a valuation of approximately 2.5 times revenues.

Golden Gate and Infor publicly confirmed their unsolicited bid for Lawson Software back in March. Lawson then evaluated ‘strategic alternatives’ – they contacted other potential acquirers, but a superior proposal was not received.

Lawson’s board of directors has now unanimously approved the deal, and board members who collectively own roughly 9 percent of Lawson’s outstanding shares have agreed to vote in favor of the transaction.

The transaction is subject to customary closing conditions including the approval of other stockholders and regulatory approvals. The deal is expected to close in Q3 2011.