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

Epicor Software package is transferring to a new non-public-equity household, with KKR agreeing to market the small business application firm to Clayton Dubilier & Rice for $four.seven billion.

The offer arrives four decades right after KKR acquired Epicor from British non-public-equity firm Apax Associates for $three.three billion.

Austin, Texas-based mostly Epicor provides back-place of work and sales application to extra than twenty,000 shoppers in the retail, distribution and production sectors. Under KKR’s possession, it has designed a number of acquisitions, which includes bargains for digital-information interchange application maker 1 EDI Resource and warehouse-management application service provider Majure Knowledge.

According to The Wall Avenue Journal, CD&R has “significant working experience investing in the industrial sector, from which most of Epicor’s consumer foundation hails. In addition to application and tech providers, the firm does bargains in the purchaser and retail and health and fitness-care sectors.”

“Epicor’s reputation for good quality and general performance, and its impressive portfolio of up coming-era cloud solutions, situation the organization perfectly to speed up development in the coming decades,” Jeff Hawn, an functioning associate at CD&R, reported in a news launch.

“We glance ahead to partnering with the Epicor management team to further more increase Epicor’s products portfolio as perfectly as make strategic acquisitions to meet customers’ evolving digital transformation needs,” he added.

CD&R utilizes functioning partners — executives who have held senior management positions at important world-wide businesses — to support it supply and examine bargains and give strategic information. Hawn, who will serve as chairman of the Epicor board, was formerly CEO of Quest Software package.

Epicor’s answers consist of organization useful resource planning, consumer romance management, source chain management, and human capital management application. The solutions are out there as application-as-a-company (SaaS) and on-premises.

Apax purchased Epicor and a peer, Activant Solutions Inc., in 2011 and blended the two businesses. According to CD&R, Epicor has a profits mix that is composed of 73% recurring profits, which includes an SaaS small business development fee of sixty% 12 months-to-date.

“Companies these types of as Epicor that produce recurring profits by means of small business application sales have been well-liked targets for the non-public equity market,” Reuters reported.

Clayton Dubilier & Rice, organization application, Epicor Software package, Jeff Hawn, kkr, non-public equity, Recurring Revenue