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KKR weighing USD 5bn sale of Epicor: Reuters
Posted on Friday, 23 August 2019 10:18
Private equity firm KKR & Co is considering a sale of US-based Epicor Software that could be worth around USD 5.00 billion, including debt, Reuters reported, citing people familiar with the matter.
According to the sources, the buyout group has hired an advisor to help pursue an auction for the enterprise resource planning business.
Epicor is likely to attract other private equity firms, the insiders noted, cautioning there can be no guarantee of a deal taking place and asking not to be identified as the situation is still private.
The company provides industry-specific business software designed around the needs of manufacturing, distribution and retail, with more than 45 years of experience.
Founded in 1972, Epicor has over 20,000 customers in 150 countries around the world, relying on expertise to help improve performance and profitability.
According to its website, the group has 3,700 employees and USD 800.00 million in annual revenues, with one person in the know telling Reuters it has 12-month earnings before interest, taxes, depreciation and amortisation of USD 350.00 million.
Epicor was picked up by KKR for USD 3.30 billion from Apax Partners in 2016.
Reuters observed that software companies that generate turnover from sales of their business services have been popular targets of buyout firms in recent years.
Zephyr, the M&A database published by Bureau van Dijk, shows there were 977 private equity and venture capital investments in the global software publishing sector announced worldwide in 2019 to date.
The largest of these involves Hellman & Friedman, Blackstone, JMI Management and Canada Pension Plan Investment Board, via vehicle Unite Parent, acquiring Ultimate Software Group for USD 11.00 billion.
Corel of Canada was picked by KKR for USD 1.00 billion, while Genstar Capital Management also paid USD 1.00 billion for Prometheus Group.
Monotype Imaging Holdings, Aurora Innovation and UiPath, among others, have also been targeted in the year to date.
© Zephus Ltd