CD&R to acquire enterprise software provider Epicor Software from KKR for $4.7bn

Clayton, Dubilier & Rice (CD&R) has agreed to acquire Epicor Software, a Texas-based provider of industry-specific enterprise software to industrial-focused sectors, from KKR in a deal worth $4.7 billion.

Epicor Software offers cloud-enabled services to over 20,000 customers across the world. Its flagship products are said to be curated for supporting complex, vertical-specific workflows and give mission-critical support to customers looking to drive growth and profitability in their own businesses.

Steve Murphy – CEO of Epicor Software said: “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. 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.”

In the last four years under KKR’s ownership, the executive team of Epicor Software headed by CEO Steve Murphy is said to have driven growth by organic investments and strategic acquisitions. A series of new product releases are said to have resulted in a revenue mix made up of 73% recurring revenue, which includes a SaaS business growth rate of 60% year-to-date.

Jeff Hawn – CD&R Operating Partner 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.

“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.”