Workstream Announces Plans to Acquire Leading Human Capital Provider

  • Written By: Sherry Fox
  • Published On: January 5 2011





It seems that there are more and more acquisitions in the area of human capital management (HCM) these days. At the end of 2010, we saw enterprise resource planning (ERP) vendors Epicor acquire Spectrum HR and Lawson Software acquire Enwisen. Now it’s Workstream’s turn.

On January 3, 2011, performance and talent management software provider Workstream Inc. announced that it has entered into a Letter of Intent (LOI) to acquire a leading provider of human capital and compliance management services within the health care market.

According to Workstream’s chief executive officer (CEO) John Long, “The new management team of Workstream has chosen to approach the market with a vertical focus.” This acquisition will allow Workstream to focus its best efforts on a core group of its current and prospective clients in the health care sector—accounting for more than 90 percent of the target’s customers.

This transaction is contingent upon several factors, including successful negotiation of a definitive agreement and employment agreements with the sellers, approval of Workstream Board of Directors, and successful completion of a capital raise and lender agreements.

According to Reuters, Workstream’s stock has plummeted over the last year, currently sitting at 0.02 (USD) per share (see figure for share value fluctuations in 2010). With this acquisition, Workstream hopes for a brighter 2011.

ws-chart.pngStock Review Chart for Workstream Inc. (WSTM.OB)—Posted Jan. 5, 2011,
by Reuters


In addition to the recent announcement, Workstream’s management is actively pursuing other complementary acquisitions to expand the company’s service offering.

Read the official press release.
 
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