Sep 1, 2020

CD&R to acquire Epicor Software Corporation from KKR

Epicor
CD&R
KKR
software
Georgia Wilson
3 min
Acquisition agreement of Epicor by CD&R from KKR
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.

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Jun 18, 2021

Intelliwave SiteSense boosts APTIM material tracking

APTIM
Intelliwave
3 min
Intelliwave Technologies outlines how it provides data and visibility benefits for APTIM

“We’ve been engaged with the APTIM team since early 2019 providing SiteSense, our mobile construction SaaS solution, for their maintenance and construction projects, allowing them to track materials and equipment, and manage inventory.

We have been working with the APTIM team to standardize material tracking processes and procedures, ultimately with the goal of reducing the amount of time  spent looking for materials. Industry studies show that better management of materials can lead to a 16% increase in craft labour productivity.

Everyone knows construction is one of the oldest industries but it’s one of the least tech driven comparatively. About 95% of Engineering and Construction data captured goes unused, 13% of working hours are spent looking for data and around 30% of companies have applications that don’t integrate. 

With APTIM, we’re looking at early risk detection, through predictive analysis and forecasting of material constraints, integrating with the ecosystem of software platforms and reporting on real-time data with a ‘field-first’ focus – through initiatives like the Digital Foreman. The APTIM team has seen great wins in the field, utilising bar-code technology, to check in thousands of material items quickly compared to manual methods.

There are three key areas when it comes to successful Materials Management in the software sector – culture, technology, and vendor engagement.

Given the state of world affairs, access to data needs to be off site via the cloud to support remote working conditions, providing a ‘single source of truth’ accessed by many parties; the tech sector is always growing, so companies need faster and more reliable access to this cloud data; digital supply chain initiatives engage vendors a lot earlier in the process to drive collaboration and to engage with their clients, which gives more assurance as there is more emphasis on automating data capture. 

It’s been a challenging period with the pandemic, particularly for the supply chain. Look what happened in the Suez Canal – things can suddenly impact material costs and availability, and you really have to be more efficient to survive and succeed. Virtual system access can solve some issues and you need to look at data access in a wider net.

Solving problems comes down to better visibility, and proactively solving issues with vendors and enabling construction teams to execute their work. The biggest cause of delays is not being able to provide teams with what they need.

On average 2% of materials are lost or re-ordered, which only factors in the material cost, what is not captured is the duplicated effort of procurement, vendor and shipping costs, all of which have an environmental impact.

As things start to stabilise, APTIM continues to utilize SiteSense to boost efficiencies and solve productivity issues proactively. Integrating with 3D/4D modelling is just the precipice of what we can do. Access to data can help you firm up bids to win work, to make better cost estimates, and AI and ML are the next phase, providing an eco-system of tools.

A key focus for Intelliwave and APTIM is to increase the availability of data, whether it’s creating a data warehouse for visualisations or increasing integrations to provide additional value. We want to move to a more of an enterprise usage phase – up to now it’s been project based – so more people can access data in real time.

 

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