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MAITLAND, Fla., Jan. 3, 2011 (GLOBE NEWSWIRE) -- Workstream (OTCBB:WSTM), a leading provider of 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.
About Workstream: 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.
The Workstream, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6175This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of Workstream's management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: inability to grow our client base and revenue because of the number of competitors and the variety of sources of competition we face; client attrition; inability to identify or complete the acquisition of quality target businesses; inability to integrate acquired businesses; inability to offer services that are superior and cost effective when compared to the services being offered by our competitors; inability to further identify, develop and achieve success for new products, services and technologies; increased competition and its effect on pricing, spending, third-party relationships and revenues; as well as the inability to enter into successful strategic relationships and other risks detailed from time to time in filings with the Securities and Exchange Commission, including but not limited to those set forth under "Risk Factors" in Workstream's annual report on Form 10-K. The forward-looking statements herein reflect the company's expectations as at the date of this press release and are subject to change after this date.