Lawson Software is to buy Swedish software firm Intentia International an £264m deal.
The merged company will provide business applications for the services, manufacturing, distribution and maintenance sectors to 4,000 customers in 40 countries.
Richard Lawson, chairman of the Lawson Software board, said the deal was “not a typical software consolidation”.
He added, “This is a combination of equal companies that has tremendous growth potential in the enterprise software market. We are very excited about going forward as a unified organisation with a strong financial position and strong balance in our customers, people, products, industry markets and geographies.”
Romesh Wadhwani, chairman of the Intentia board, said there was little product or geographic overlap, so the new company could retain service and support for existing products without disruption.
“We are committed to providing new releases, enhancements and support for our core products for at least five years,” he said.
Lawson Software also announced that president and chief executive, Jay Coughlan, would step down. He will be replaced by Harry Debes, president and chief executive of SPL Worldgroup.
The all-stock deal, unanimously approved by the boards of directors of both companies, is expected to close by 31 December, when Bertrand Sciard, president and chief executive of Intentia, will become chief operating officer of the combined company.
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