Epicor eyeing bigger M&A deals under Clayton Dubilier & Rice ownership - Business Insider

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The CEO of Epicor says the enterprise-software maker is planning a bigger M&A push once it changes hands to new private-equity owner Clayton Dubilier & Rice in a $4.7 billion deal

The largest enterprise-software deal of the year was just inked and the CEO of the acquiree told Business Insider it would take an "aggressive" approach M&A under its new private-equity owners.

Clayton Dubilier & Rice agreed to buy Epicor for $4.7 billion from KKR, which had owned the software company for four years and expanded its business through acquisitions and new product launches. The CEO of Epicor, which is set to become the largest-enterprise software company to be acquired in 2020, says that it could look to step up acquisitions under its new private-equity owners.

Its new owner, should the $4.7 billion acquisition close later this year, would also introduce Epicor to its portfolio companies, several of which are already existing Epicor customers, Murphy said. Big private-equity firms are piling into tech deals. Top execs at Carlyle, KKR, and Warburg Pincus laid out how they're angling for an edge.

But sometimes the industry overlap between a company and its private equity owner isn't material enough to generate significant sales. Software companies are popular investments for private-equity firms because they rely on the stable, recurring revenues that come from subscription renewals. Their growth strategy is also relatively straightforward, with upgrades to existing software and acquisitions of complementary products.

 

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