KKR, as always, is busy. Most recently, the private equity firm has agreed to buy business software company Epicor Software Corp. from Apex Partners for $3.3 billion. Epicor offers software solutions to customers in manufacturing, distribution, and retail to help facilitate companies’ geographic growth.
Epicor, a company based in Texas, offers back-office and sales software to manufacturers, retailers, and distributors, including Ace Hardware and AutoZone. Apex Partners currently owns Epicor, so a portion of that $3.3 billion purchase price includes some of Epicor’s existing debt.
KKR believes in making smart investments that will last and be successful for years to come. KKR co-founder Henry Kravis approaches investments with an attitude that favors the long-term. “One of the questions I always like to ask a CEO when I’m thinking of making an investment is, ‘You’re here today, where do you want to be five years from now?’” Kravis said. “Then I want to know 10 years…Most of the time they’re thinking about what’s going to happen next quarter, but we really do think in those long-term increments.”
“We are eager to work with KKR and believe their capabilities in the technology sector, both domestically and internationally, will enable us to find new ways to create value,” said Joe Cowan, CEO and president of Epicor.
Initially, Apax Partners purchased Epicor and one of its peers, Activant Solutions Inc., in 2011, and combined them. Under Apax’s management, Epicor added a division serving apparel and specialty retailers. Apax will retain control of that division, called Aptos, Inc.
Apax tried to sell Epicor in 2014 but chose not to in the end, turning down offers for up to $3 billion from bidders including The Wall Street Journal and CVC Capital Partners.
“KKR is very pleased to be partnering with Epicor to accelerate its next phase of global growth,” said Herald Chen, KKR Member and Head of Technology at KKR. “Through a world-class Epicor team, leading cloud-ready technologies, and a keen focus on its customers, the company is in tremendous position to build on its long history of success.”