Select Page

ongoing efforts to sell Epicor were reported by ExitHub in June. A few days ago, KKR was said to have made a buyout bid in excess of $10 billion for iconic motorcycle manufacturer Harley-Davidson (NYSE: HOG). The move comes amid a recent flurry of business software company buyouts. A month ago, New York-based private equity firm Thoma Bravo LLC agreed to acquire Qlik Technologies Inc. (NASDAQ: QLIK), a leader in visual analytics and data visualization, for $3 billion. In May, Israeli enterprise software solutions provider NICE Systems (NASDAQ: NICE) agreed to acquire Salt Lake City, Utah-based inContact Inc. (NASDAQ: SAAS), a leading provider of cloud contact center software, for $940 million. In late March, Vista Equity Partners agreed to acquire San Mateo, Calif.-based marketing automation platform Marketo Inc. (NASDAQ: MKTO), for $1.79 million. Founded in 1972, Epicor has over 33,000 customers in more than 150 countries around the world. Epicor provides industry-specific business software designed around the needs of manufacturing, distribution, retail, and services organizations. Epicor provides enterprise resource planning (ERP), customer relationship management (CRM), supply chain management (SCM), and human capital management (HCM) software to business customers in both Software as a Service (SaaS) and On-Premises deployment models. “Our top priority continues to be delivering cloud-ready, market-leading solutions paired with a world-class customer experience,” said Joe Cowan, president and CEO of Epicor. “KKR shares our vision of providing innovative technology with a clear focus on helping customers grow business, not software. This is an exciting time for Epicor, and I am extremely appreciative of Apax’s support during the last five years.” “KKR is very pleased to be partnering with Epicor to accelerate its next phase of global growth,” said Herald Chen, member of private equity and head of technology at KKR. “Through a world-class Epicor team, leading cloud-ready technologies and a keen focus on its customers, the company is in tremendous position to build on its long history of success.” Jason Wright, a partner at Apax Partners, said, “We are proud of our collaboration with Epicor to build one of the largest global providers of enterprise applications differentiated by a focus on the customer and deep industry expertise. Through its unwavering focus on driving growth for its customers, Epicor, led by President and CEO Joe Cowan, grew organically and also expanded through strategic acquisitions. Our partnership with Epicor exemplifies Apax’s strategy of helping companies strengthen their leadership positions and accelerate their growth.” KKR is primarily making the investment from its eleventh Americas Private Equity investment fund. Morgan Stanley & Co. LLC and RBC Capital Markets served as financial advisors to KKR on the transaction. BofA Merrill Lynch and UBS Investment Bank served as financial advisors to Epicor. The transaction is expected to close by the end of August, subject to customary conditions to closing, including regulatory approval. KKR, founded in 1976 and headquartered in New York City, is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world‐class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners’ capital and brings opportunities to others through its capital markets business. As of December 31, 2015, the firm had $120 billion in assets under management. Apax Partners, headquartered in London, is an independent global partnership focused solely on long-term investment in growth companies. the firm typically invests in large companies with an enterprise value between €1bn and €5bn, in four sectors: Tech & Telco, Services, Healthcare, and Consumer. The firm has a global network of 8 offices in four continents and employs over 230 people. At December 31, 2015, the firm, including its various predecessors, have raised approximately $38 billion (€35bn) dating back to 1969. Apax Partners is one of the oldest and largest private equity firms operating on an international basis. In April 2011, Apax acquired both Epicor (formerly NASDAQ: EPIC) and business management software provider Activant Solutions Inc., in a deal valued at $2 billion, and combined the two companies. Apax invested $647 million equity into the deals, an SEC filing said. In 2014, Apax explored the sale of Epicor, but ultimately chose not to sell, turning down offers it deemed too low from bidders including CVC Capital Partners. Some bids were around $3 billion including debt, the Journal reported. In May 2015, Epicor was in the market with “a $1.4 billion covenant-lite term loan that is part of a $1.5 billion dividend recap credit,” Thomson Reuters Loan Pricing Corp said. Proceeds were to be used reportedly to refinance and recap Epicor’s existing debt as well as pay a distribution to its parent Apax. Standard & Poor’s said the dividend to Apax was $300 million, on top of a $380 million distribution Epicor made to Apax in June 2013. The $680 million dividend was greater than the $647 million it invested. Apax reportedly received a third dividend from Epicor RSG US Inc., a business unit which was reportedly spun off into a separate, privately held company backed by Apax, Moody’s said in May 2015.]]>