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Friday, May 16, 2014

Apax Partners Puts Epicor Software on the Block

Epicor Software Corp., a private-equity owned company that assists other firms with sales and supply-chain management, is on the block and seeking as much as $3.5 billion, said people familiar with the matter.

The company, purchased by London-based buyout firm Apax Partners for around $1.04 billion in 2011, is working with Jefferies Group LLC to seek buyers. Valuations for the company differ, but people around the deal say Epicor could fetch between $2.5 billion to $3.5 billion, including debt.

Epicor, based in Austin, Texas, serves the distribution, manufacturing, retail and services industries world-wide. It posted sales of $978.3 million in 2013 and carries about $1.3 billion in debt, according to public filings.

After purchasing Epicor, Apax merged it with another rival software-maker, Activant Solutions Inc., which was previously owned by Hellman & Friedman LLC, JMI Equity and Thoma Bravo LLC. In 2012, Epicor paid $155 million to acquire another smaller rival, Solarsoft Business Systems, from Marlin Equity Partners.

In 2012 and 2013, Epicor issued $340 million and $350 million of new debt respectively, to fund dividends to its private-equity owner, according to S&P Capital IQ LCD. 

A sale of Epicor would follow private-equity deals involving similar software companies. Earlier this year, Blackstone Group LP and GIC Private Ltd. paid $750 million for a minority stake in human-resources software company Kronos Inc. in a deal that valued the company at $4.5 billion including debt. And in late 2013, Hellman & Friedman acquired insurance software maker Applied Systems Inc. for $1.8 billion including debt.

Write to Mike Spector at, Gillian Tan at and Dana Mattioli at

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