CD&R to acquire Epicor Software Corporation from KKR

By Georgia Wilson
Valued at US$4.7bn, Clayton, Dubilier and Rice (CD&R) is set to acquire Epicor Software Corporation from KKR...

In a recent announcement made by Clayton, Dubilier and Rice (CD&R), the company has established an agreement with KKR to acquire Epicor Software Corporation.

The agreement marks a key milestone for Epicor Software Corporation - a global provider of industry specific enterprise software, that creates products to support complex, vertical-specific workflows alongside provides mission-critical support that drives growth and profitability. 

“We are excited to partner with Epicor and its talented management team to drive the business into a new phase of growth and profitability,” said Rick Schnall, CD&R Co-President. “Our long-standing industrial end-market experience and growing enterprise software expertise aligns well with Epicor’s value creation plan.”

Epicor has been under the ownership of KKR for four years, driving its growth via organic investment and strategic acquisition. 

"Four years ago, we embarked on an ambitious product modernization journey together with Epicor and are incredibly proud of the successes that the company has achieved to date, particularly with its recent cloud releases," commented John Park, Chairman of the Epicor Board and Head of Americas Technology Private Equity at KKR.

As a result the company’s revenue mix comprises 73% recurring revenue, which includes an SaaS business growth rate of 60% (year-to-date). 

“This is an exciting day for the entire Epicor family—employees, customers, and partners alike – and validates the company’s leadership position across markets we serve,” said Epicor CEO Steve Murphy. “We welcome this new partnership with CD&R, which shares our vision for growing the company, and I thank KKR for a highly successful partnership these past few years. We are excited to work with CD&R to increase investment in our market-leading product portfolio and to enhance our ability to support an ever-increasing range of customer needs.”

Believing that Epicor’s reputation for quality and performance, alongside its next generation cloud products, positions it well for accelerated growth in the next few years, Jeff Hawn, CD&R Operating Partner, commented: “we look forward to partnering with the Epicor management team to further expand Epicor’s product portfolio as well as make strategic acquisitions to meet customers’ evolving digital transformation needs.”

Following the expected acquisition later this year, CD&R’s Operating Partner - Jeff Hawn - will serve as Chairman of the Board at Epicor. Hawn has over 20 years of experience holding senior executive roles in software and technology businesses. 

As part of the acquisition, UBS Investment Bank will act as financial advisor, alongside Debevoise & Plimpton LLP as legal advisor for CD&R. While Barclays will act as lead financial advisor, BofA Securities and Jefferies LLC as financial advisors, and Simpson Thacher & Bartlett LLP as legal advisor to KKR and Epicor.

For more information on business topics in the United States and Canada, please take a look at the latest edition of Business Chief North America.

Follow Business Chief on LinkedIn and Twitter.


Featured Articles

Microsoft, McDonald’s latest firms to run civil rights audit

Microsoft and McDonald’s join Amazon, Citi, JPMorgan and others in conducting civil rights audits, as investor pressure to achieve racial equity mounts

Deep dive: Investment in carbon capture rises as CO2 spikes

Investment in carbon removal solutions and startups is heating up as fast as the planet, with Temasek and CEMEX Ventures the latest VCs to launch funds

Dialight envisions a safe industrial world with LED lights

Reliance on inefficient lighting technologies are not only harmful to the environment, but also increase injury risk and cost

Top 10: Tech, cyber, 5G, cloud speakers at TECH LIVE LONDON

Technology & AI

Eight big announcements made at Davos 2022, from ESG to tech


Hear Vodafone Business cyber chief Kawalec at Cyber LIVE

Leadership & Strategy