Private equity firm buys Epicor, Activant

A private equity firm has acquired Epicor Software and Activant Solutions, with plans to merge the two software companies into one of the world's largest enterprise application vendors.

In a statement Monday, Apax Partners said the two acquisitions have a combined value of US$2 billion. The merged entity is expected to become one of the biggest global providers of enterprise applications focused on the manufacturing, distribution, services and retail sectors--with over 30,000 customers and US$825 million in annual revenues. It will be named Epicor Software Corporation and become a privately held company.

According to the Associated Press, Apax offered US$12.50 a share for Irvine, Calif.-based Epicor, which represents an 11.2 percent premium on the stock's closing price last Friday. The Epicor deal alone is valued at about $800 million, the news wire reported.

It added that about 19 percent of Epicor shareholders have agreed to vote in favor of the acquisition, while Elliott Associates, which has a 13.5 percent stake, is also supportive of the buyout.

According to its corporate Web site, Apax has over 30 years of investment experience and operates across the United States, Europe and Asia, with global funds amounting to around US$40 billion. It focuses on technology and telecom; retail and consumer; media; healthcare and financial and business services and only invests in companies valued between 1 billion euros (US$1.4 billion) and 5 billion euros (US$7.1 billion).

Prior to the double deal, Apax's last acquisition was Trader Corporation from Yellow Media Inc. for approximately US$745 million, according to its Web site.