LRS Acquisition of Cirrato Technologies AB
Cirrato Technologies of Stockholm, Sweden officially joined LRS on September 19, 2016, and I wanted to share my perspectives on LRS’ latest acquisition.
In the niche market of print/output management software, every vendor knows their competitors. It’s like living in a small town. Nothing happens without everyone else knowing about it in a short amount of time. LRS has known Cirrato since they emerged as a major provider of print management software about a decade ago. As with any IT company that has good technology, respect is won in the marketplace the old fashioned way – competing and winning with innovation, good products and support.
Historically, LRS has focused on large enterprise organizations in developed countries. Think about the world’s biggest corporations, and you’ll find that many of them are long-term, satisfied customers of LRS. However, the world is a big place, not just geographically speaking but also in the range of business sizes and types. No single product/solution addresses all customer requirements, in terms of pricing, functionality, service, support and customer-vendor business relationships. The market always wants choice, including what to buy and from whom to buy it. It’s a complex Rubik’s Cube to solve. We get it, so we looked to Cirrato for help.
Mergers and acquisitions are always more successful when both parties share a common vision and are motivated and excited to work together. Such is the case here. There are also strategic drivers behind mergers and acquisitions, such as the desire to:
- Eliminate a major competitor
- Increase market share by combining customers and business partners
- Expand into new markets with additional sales channels
- Obtain new products and technology
- Leverage distinctive/core competencies of each business
- Adapt more quickly to changing market conditions
- Learn new ideas and best practices from each other
- Grow critical skills across the organization
All of these factors apply here. The key question is - are we stronger together than separate? Absolutely! As Director of Product Management for LRS, I see lots of synergy between the companies that will drive our future business and product strategy.
I have worked in the document/print industry for over 30 years, so I have seen a lot of changes. People and businesses come and go. Technology evolves, and new market requirements emerge. Change can be disruptive for some businesses, but it can also be very positive for others. It often comes down to attitude and strong leadership. I’m confident that the LRS and Cirrato leadership team has the right attitude and vision to make this business venture a success for our collective employees, customers, and partners. Our combined track record in the global market should dispel any doubts.
I am certainly looking forward to working with my Cirrato colleagues. A successful business can never have too many smart people. It’s simply not a problem, unless you make poor use of their talents, energy and creativity. I’m not worried. LRS has acquired other businesses before with great success. Cirrato will be one more.
All I really need to do is brush up on my favorite Swedish jokes. Did you hear the one about…