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Activant Solutions Inc. Agrees to be Acquired by Apax Partners

Monday, April 04, 2011 8:44 AM

LIVERMORE, Calif., April 4, 2011 /PRNewswire/ -- Activant Solutions Inc., a leading technology provider of ERP and point-of-sale software serving mid-market retailers and distributors, today announced that it has entered into a definitive agreement to be acquired by funds advised by Apax Partners, one of the world's leading private equity firms with a strong heritage of technology investment. Activant is currently owned by investment funds affiliated with Hellman & Friedman LLC, Thoma Bravo, LLC and JMI Equity, and by management.

Apax also announced today that it is has entered into a definitive agreement under which funds advised by Apax will acquire Epicor Software Corporation (Nasdaq: EPIC), a provider of enterprise business software solutions for the mid-market and the divisions of global 1000 companies. Apax intends to combine Activant with Epicor to create one of the largest global providers of enterprise applications focused on the manufacturing, distribution, services and retail sectors. Following completion of the merger, the combined company will be called Epicor Software Corporation.

"This transaction is extremely positive for Activant's customers, employees and investors alike," said Pervez Qureshi, Activant president and CEO. "Our market leadership and expertise in distribution perfectly complements Epicor's expertise in the manufacturing and services sectors. Together, Activant and Epicor's retail business solutions can now cover the full spectrum of retailing - from small hardlines retailers, to national specialty softgoods and apparel chains, to global general merchandise department stores. Additionally, with Epicor's worldwide infrastructure, we will have the opportunity to service and support Activant products internationally, which is very important as our customers compete in an increasingly global business environment."

"With Apax, we are partnering with one of the premier investment firms in the world and one that is very much focused on growth and delivering value to the customers of its portfolio companies," continued Qureshi. "The combined company will have over 30,000 customers, $825 million in annual revenues, and the most visionary business application software and vertical industry expertise in the market today. Apax is committed to growing the businesses in which they invest and has an excellent track record of working as a strategic partner with management to build high-growth companies."

Under the terms of the agreement, all of Activant's outstanding shares and stock options will be acquired for cash. Upon completion of the transaction all of Activant's outstanding 9-1/2% Senior Subordinated Notes will be redeemed and Activant's senior secured indebtedness will be repaid. Apax has received debt commitment letters from Bank of America, N.A. and Royal Bank of Canada to provide the debt necessary to close the acquisitions.


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