April 20, 2024

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KKR Sells Epicor Software to CD&R for $4.7B

Epicor Software package is relocating to a new personal-equity home, with KKR agreeing to sell the enterprise program firm to Clayton Dubilier & Rice for $4.7 billion.

The deal comes 4 a long time just after KKR acquired Epicor from British personal-equity firm Apax Partners for $3.3 billion.

Austin, Texas-centered Epicor presents back-business and product sales program to a lot more than 20,000 customers in the retail, distribution and producing sectors. Beneath KKR’s ownership, it has manufactured a selection of acquisitions, which includes promotions for digital-details interchange program maker one EDI Supply and warehouse-administration program provider Majure Knowledge.

In accordance to The Wall Road Journal, CD&R has “significant expertise investing in the industrial sector, from which most of Epicor’s purchaser base hails. In addition to program and tech expert services, the firm does promotions in the client and retail and health and fitness-treatment sectors.”

“Epicor’s reputation for excellent and overall performance, and its impressive portfolio of following-generation cloud solutions, posture the firm well to accelerate development in the coming a long time,” Jeff Hawn, an functioning partner at CD&R, stated in a news release.

“We seem forward to partnering with the Epicor administration group to more increase Epicor’s merchandise portfolio as well as make strategic acquisitions to meet up with customers’ evolving electronic transformation requirements,” he added.

CD&R employs functioning partners — executives who have held senior management positions at significant global businesses — to help it supply and assess promotions and deliver strategic information. Hawn, who will provide as chairman of the Epicor board, was formerly CEO of Quest Software package.

Epicor’s answers include things like company source setting up, purchaser romance administration, supply chain administration, and human money administration program. The solutions are offered as program-as-a-provider (SaaS) and on-premises.

Apax acquired Epicor and a peer, Activant Solutions Inc., in 2011 and combined the two organizations. In accordance to CD&R, Epicor has a profits blend that is made up of 73% recurring profits, which contains an SaaS enterprise development amount of sixty% 12 months-to-date.

“Companies these types of as Epicor that generate recurring profits as a result of enterprise program product sales have been well-liked targets for the personal equity industry,” Reuters stated.

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