Built Business Tough

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

Epicor Application is moving to a new non-public-fairness property, with KKR agreeing to market the business program organization to Clayton Dubilier & Rice for $four.seven billion.

The offer will come 4 several years just after KKR acquired Epicor from British non-public-fairness organization Apax Companions for $three.three billion.

Austin, Texas-primarily based Epicor presents back again-workplace and revenue program to much more than 20,000 shoppers in the retail, distribution and manufacturing sectors. Below KKR’s possession, it has built a amount of acquisitions, which include deals for electronic-facts interchange program maker one EDI Supply and warehouse-administration program company Majure Information.

In accordance to The Wall Street Journal, CD&R has “significant experience investing in the industrial sector, from which most of Epicor’s purchaser base hails. In addition to program and tech providers, the organization does deals in the purchaser and retail and health and fitness-treatment sectors.”

“Epicor’s track record for excellent and efficiency, and its outstanding portfolio of future-generation cloud goods, placement the organization nicely to accelerate development in the coming several years,” Jeff Hawn, an working associate at CD&R, stated in a information launch.

“We look forward to partnering with the Epicor administration staff to more broaden Epicor’s product or service portfolio as nicely as make strategic acquisitions to meet customers’ evolving electronic transformation needs,” he extra.

CD&R uses working associates — executives who have held senior leadership positions at important worldwide businesses — to assistance it supply and appraise deals and give strategic suggestions. Hawn, who will provide as chairman of the Epicor board, was previously CEO of Quest Application.

Epicor’s answers include things like enterprise resource planning, purchaser romantic relationship administration, provide chain administration, and human cash administration program. The goods are available as program-as-a-services (SaaS) and on-premises.

Apax bought Epicor and a peer, Activant Remedies Inc., in 2011 and combined the two organizations. In accordance to CD&R, Epicor has a profits mix that consists of seventy three% recurring profits, which incorporates an SaaS business development fee of 60% yr-to-date.

“Companies these kinds of as Epicor that generate recurring profits through business program revenue have been well-known targets for the non-public fairness sector,” Reuters stated.

Clayton Dubilier & Rice, enterprise program, Epicor Application, Jeff Hawn, kkr, non-public fairness, Recurring Revenue