Private equity firm Clayton, Dubilier & Rice (CD&R) has agreed to buy Epicor Software Crop. owned by KKR & Co. Inc. for $4.7 billion. KKR is also a private equity firm that acquired Epicor in 2016 from Apax Partners for $3.3 billion.
Epicor Software provides industry-specific business software including Customer Relationship Management, Supply Chain Management, Human Capital Management software. However, in recent years their business has shifted more towards virtual, cloud-based computing systems. It is present in over 150 countries and has flourished during pandemic due to their virtual services. Under KKR's ownership Epicor grew significantly by strategic acquisitions and profitable investments. Moreover, it also released a series of new products boosting their recurring revenue by 73% and a growth rate of 60% year-to-date.
Jeff Hawn, CD&R's Operating Partner, who will be serving as the chairman of Epicor Board said, "Epicor's reputation for quality and performance, and its impressive portfolio of next-generation cloud products, position the company well to accelerate growth in the coming years.." Mr. Hawn has over 20 years of experience in technology-related businesses. The deal is supposed to close later this year.