Jeeves Sells Program Rights to its HRM System

admin October 2007

Jeeves HRM is a complete system for human resource management. Jeeves will continue to offer its customers a packaged version of HRM as part of its Jeeves ERP system. HRM functionality will therefore continue to be available as an integrated module of Jeeves ERP under the name Jeeves HRM. Jeeves will also maintain its product expertise in the HRM field.

"Being able to offer an integrated HRM solution with Jeeves ERP is critical for Jeeves and is something that many ERP system customers are on the lookout for. This was what Jeeves wanted to achieve when we bought the HRM product 2 years ago. We will still deliver it, but at the same time let HRM Software take this modern HRM solution to a wider market than the one we work in with our other products. We do not consider ourselves the best long-term owner for this HRM system," said Nicolas Ehrling, CEO of Jeeves Information Systems.

"We will maintain a close cooperation with Jeeves with a packaged solution for the normal Jeeves customer. This is because both HRM Software and Jeeves see great potential for the HRM system integrated with an ERP system such as Jeeves ERP, which is designed for small and midsize companies," said Sven Ingemarsson, President and one of the founders of HRM Software AB.

"HRM is a complete and modern HRM solution that can be used by customers that are larger than the target group of our ERP system offering. For this reason, we are not the best owners from a strategic perspective. We are convinced that you must be able to focus on the solution's entire market and HRM as a science in order to give the product the best possible potential for growth. Jeeves Information Systems is not that owner," said Lars Dahlberg, Sales & Marketing Director for Jeeves Information Systems.

Globally, more than 3,000 companies in over 40 countries use ERP system solutions from Jeeves in their daily operations. Through this cooperation, Jeeves will continue to be able to offer a complete ERP system that includes HRM. The sales price was 6 million SEK. As part of the agreement, Jeeves will receive a royalty for certain HRM sales but will also reciprocally purchase licenses from HRM Software at a value of 1.5 million SEK via its partners and end customers. Prior to the sale, the HRM system's booked value was 3.9 million SEK. The sales price is paid cash.