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

Truman Slate

Epicor Program is transferring to a new non-public-fairness house, with KKR agreeing to promote the company software program firm to Clayton Dubilier & Rice for $4.7 billion.

The deal comes 4 several years immediately after KKR acquired Epicor from British non-public-fairness firm Apax Associates for $three.three billion.

Austin, Texas-based Epicor gives again-office and revenue software program to far more than twenty,000 consumers in the retail, distribution and manufacturing sectors. Less than KKR’s ownership, it has created a range of acquisitions, such as promotions for electronic-info interchange software program maker one EDI Source and warehouse-administration software program service provider Majure Facts.

According to The Wall Road Journal, CD&R has “significant encounter investing in the industrial sector, from which most of Epicor’s client base hails. In addition to software program and tech products and services, the firm does promotions in the shopper and retail and wellness-care sectors.”

“Epicor’s status for high-quality and overall performance, and its extraordinary portfolio of subsequent-generation cloud items, situation the business nicely to speed up advancement in the coming several years,” Jeff Hawn, an functioning companion at CD&R, reported in a information release.

“We search forward to partnering with the Epicor administration crew to additional grow Epicor’s solution portfolio as nicely as make strategic acquisitions to satisfy customers’ evolving electronic transformation requirements,” he additional.

CD&R makes use of functioning companions — executives who have held senior management positions at significant world corporations — to help it supply and examine promotions and present strategic guidance. Hawn, who will serve as chairman of the Epicor board, was formerly CEO of Quest Program.

Epicor’s solutions involve business useful resource arranging, client connection administration, offer chain administration, and human money administration software program. The items are offered as software program-as-a-service (SaaS) and on-premises.

Apax bought Epicor and a peer, Activant Solutions Inc., in 2011 and put together the two corporations. According to CD&R, Epicor has a earnings blend that consists of 73% recurring earnings, which contains an SaaS company advancement amount of sixty% 12 months-to-day.

“Companies such as Epicor that make recurring earnings through company software program revenue have been well-known targets for the non-public fairness marketplace,” Reuters reported.

Clayton Dubilier & Rice, business software program, Epicor Program, Jeff Hawn, kkr, non-public fairness, Recurring Earnings

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