Epicor Software Corporation is acquiring the privately-held Spectrum Human Resource Systems Corporation based in Denver, Colorado for approximately $16 million in cash, subject to certain closing adjustments. The acquisition is expected to close by December 31, 2010.
Epicor Software Corporation is a leading provider of enterprise business software solutions to the mid-market and Global 1000 companies.
Spectrum comes with approximately 100 employees, over 430 direct customers (an additional 1,800 through OEM relationships) and projected full-year 2010 revenues of approximately $14 million.
Spectrum’s best-in-class web-based human resource solutions will be the core of the newly formed Epicor Human Capital Management (HCM) group.
The acquisition broadens Epicor’s position as a leading provider of complete end-to-end enterprise business solutions to the manufacturing, distribution, retail, hospitality and services sector with the addition of end-to-end HRMS.
George Klaus, Chairman, President and CEO of Epicor says Spectrum is perfectly aligned with their strategy to provide comprehensive solutions and services that offer businesses both choice and flexibility, delivered on-premise as a managed service or in the cloud.
The acquisition, he continues is an excellent fit from the perspective of technology, corporate culture and customer service. Both companies leverage the Microsoft .NET framework, have a customer-centric focus and deliver service from a single-point of accountability.
He adds that the opportunity to deliver this comprehensive best-in-class HRMS creates new market opportunities both domestically and internationally. The complementary technology focus along with their commitment to service-oriented architecture (SOA) will allow them to quickly integrate the product across many of their product lines particularly Epicor 9, creating significant cross-selling opportunities to both their ERP and HCM customers.
Global HCM Market Opportunity in the Cloud
Gartner, Inc., in a recent report says that CIOs should include HCM applications in their service-oriented architecture (SOA) plans, and HCM technology governance plans must address growing SaaS use.
The report also says that HCM applications are fundamental to an organisation's business application strategy and estimates approximately $6 billion in revenue in the HCM software market in 2010 with expected 4.5% growth during the next three years.
With combined focus on Microsoft .NET, Web 2.0 and cloud computing technologies in addition to expertise in delivering world-class business solutions, Epicor and Spectrum together can offer an end-to-end HCM solution backed by local country support, localisation and language while supporting flexible delivery options including SaaS, hosted and on-premise.
Sybll Romley, CEO and president of Spectrum says that the economic downturn has shifted much of the focus of corporate HR from recruitment and on-boarding to talent management and employee development.
Romley adds that with increasingly decentralised workforces, the rise of social networking and rapidly evolving government, privacy as well as regulatory compliance requirements, the value of a truly integrated HCM solution that aligns HR best practices with the overall business objectives of a company is significant.
Speaking on the acquisition, he states that Epicor’s infrastructure and global presence provide a strong platform to expand into new markets as a best-in-class solution that will benefit Spectrum customers in terms of technology, product roadmap synergy between the two companies as well as direct access to Epicor resources worldwide.