Newly Merged Lawson Pledges Alternative to "Big Two" in Global ERP Market

Combination of Lawson and Intentia promises simplified enterprise apps for mid-market, looks to expand manufacturing penetration in North America

St. Paul, MN — May 8, 2006 — Lawson Software and Intentia International have officially began operating as one company, offering a portfolio of enterprise resource planning solutions and pledging to take on the major players in the ERP world.

The newly merged companies completed their combination when more than 97 percent of Intentia's share- and warrant-holders accepted Lawson's offer for newly issued shares of Lawson common stock. The combined entity will retain the name of Lawson Software and be based out of St. Paul.

The combination has brought together two leading mid-market ERP players. Lawson said that it can now effectively serve manufacturing, distribution and services industries across the globe, and its revenues will closely mirror the global ERP marketplace, with 45 percent coming from North America, 45 percent from Europe and the remainder from Asia-Pacific. Total combined revenues are approximately $750 million.

"The market needs a strong, viable vendor that can offer simplicity over the complexity of the two large ERP vendors," said Lawson President and CEO Harry Debes. "The market wants choice, and we expect to establish ourselves as the preferred ERP provider for companies that want to streamline business processes and run their operations more effectively. Just as importantly, we intend to be a company that is simple to do business with, and we intend to deliver on our promises."

Debes said the company is beginning a period of integration that builds on months of prior planning. Lawson and Intentia said they used the pre-merger period to finalize integration plans and improve overall operating effectiveness within both organizations.

Ensuring Continuity

A key part of Lawson's integration plans is ensuring continuity, serving customers without interruption and helping to protect their long-term investments. Existing customers will work with the same account executives, the same consultants and the same support center contacts. Regional management will also be little changed, and Lawson has promised a 24-hour guaranteed response to any customer inquiry made to any Lawson employee.

Similarly, Lawson will continue to maintain two separate product lines, known as Lawson M3 and Lawson S3. Lawson M3 applications are designed for the "make, move, maintain" markets traditionally addressed by Intentia. These markets include fashion and apparel, food and beverage, wholesale distribution and asset-intensive industries. The applications include enterprise management, supplier relationship management, customer relationship management, supply chain management, value chain collaboration, enterprise performance management and workplace management.

The Lawson S3 applications are designed for the "staff, source, serve" markets Lawson historically addressed. These markets include healthcare, retail, local government, K-12 education and banking and insurance. The Lawson S3 applications include human capital management, enterprise financial management, supply chain management and enterprise performance management.

The new company is targeting three specific new license revenue opportunities created by the merger. First, Lawson believes there is an opportunity to increase the penetration of the Lawson M3 product line into the U.S. market, where it currently has a much smaller share than in Europe. Second, Lawson intends to offer its human capital management suite to new and existing customers in the European and Asian markets. Today, nearly all HCM revenue is derived from North America. Third, the company expects to provide an enterprise asset management suite to its Lawson S3 customers to track both human and physical assets, such as medical equipment.

Additional Articles of Interest

— Capturing the sourcing savings in a low-cost manufacturing strategy means weighing the risks and understanding total cost. Read more in "Supply Base Localization: A Different Look at Low-cost Country Sourcing," in the February/March 2006 issue of Supply & Demand Chain Executive.

— Got tools? Using tool management software can improve productivity and the bottom line. Read more in "Winning at the Tool Management Game," exclusively on