Epicor Software Corporation, one of the leading providers of enterprise business software solutions for the mid-market, announced on April 4th that it has entered into a definitive agreement to be acquired by Apax Partners, one of the world’s leading private equity firms.
Under the terms of the agreement, Apax will commence a tender offer to acquire all of the outstanding common stock of Epicor for $12.50 per share in cash, followed by a merger to acquire all remaining outstanding Epicor shares at the same price paid in the tender offer.
Shareholders representing approximately 19% of Epicor’s outstanding shares have entered into support agreements with Apax in connection with the transaction. In addition, Elliott Associates, which beneficially owns approximately 13.5% of Epicor’s outstanding shares, has indicated that it supports the transaction.
Apax also announced today that it has entered into an agreement to acquire Activant Solutions, Inc., a leading technology provider of business management software solutions for mid-market retail and wholesale distribution businesses. Activant is a recognized leader in providing comprehensive ERP and Point-of-Sale software to the distribution and retail markets, predominately in North America.
Apax intends to combine Activant and Epicor to create a global provider of enterprise applications focused on the manufacturing, distribution, services and retail sectors. Following completion of the merger, the combined company will be Epicor Software Corporation and will no longer be a publicly traded company. The transaction is currently expected to close in the second quarter of 2011.
This could be result in further deepening of vertical solutions from Epicor. It will certainly strengthen the offering for retail and distribution.