Workstream Announces Acquisition Plans to Drive Significant Growth in 2011
MAITLAND, FL, — Workstream Inc. (TM) (OTCBB: WSTM – News), a leading provider of on-demand compensation, performance and talent management software solutions, announced today that it has entered into a Letter of Intent (LOI) to acquire a leading provider of Human Capital and Compliance Management services focused on the health care market. With over 1,000 clients, the company is a leading supplier of critical services to this market across the country. The target company provides an excellent foundation for expansion of Workstream’s core enterprise software solutions.
This transaction is contingent on the successful negotiation of a definitive agreement and employment agreements with the sellers, approval of Workstream Board of Directors and the successful completion of a capital raise and lender agreements.
“The new management team of Workstream has chosen to approach the market with a vertical focus,” commented John Long, CEO of Workstream. “With over 90% of the target’s customers in the high growth health care sector, we think this transaction allows for a focused approach to the expansion of Workstream’s core software products. Rather than trying to be all things to all people we want to be the best to a core group of current and prospective clients. We are especially excited about developing sales and service strategies for the client base.”
Long added: “The management team of the target company is exceptional and will continue to be involved in growing the business. Together, we will expand the current offering and bring new services to the health care market to meet essential human resource and compliance needs.”
Workstream delivers software solutions to address Employee Performance, Development and Compensation Management goals for employers. In addition to the announced transaction, management is actively pursuing other complementary acquisitions to expand the company’s service offering.
“We believe 2011 will be an excellent year for Workstream as management develops a true Software and Services platform for Human Capital Management needs.” said Long.
Workstream provides compensation planning, performance management, and talent management solutions and services that help companies manage the employee lifecycle, with a strong focus on performance based compensation. Workstream’s Talent Center enables employers to align their talent strategy with their business strategy. Solutions are offered on a monthly subscription basis, under Software as a Service (SaaS) model.