CVC acquires significant stake in global software firm Epicor

Investment firms Clayton, Dubilier & Rice (CD&R) and CVC have announced that funds managed by CVC will acquire a significant ownership position in Epicor, a global provider of industry-specific enterprise software.

Under the new agreement, CD&R, which initially invested in Epicor in 2020, and CVC will each have an equal number of Board seats. Jeff Hawn will continue in his role as Chairman, while Steve Murphy will remain as CEO of Epicor. The financial terms of the private transaction were not disclosed.

Founded in 1972 and based in Austin, Texas, Epicor is recognised for its SaaS multi-vertical Enterprise Resource Planning (ERP) software, tailored for customers in various industrial sectors within the Make, Move, and Sell economy. Epicor's flagship products are designed to support complex, industry-specific workflows and provide mission-critical solutions aimed at driving growth and profitability for its approximately 23,000 customers spread across more than 150 countries.

"Our customers and their ambitions are the focus of what we do as we work to provide the most innovative solution sets possible," said Steve Murphy, Epicor CEO. "CD&R's support and partnership have been invaluable as we have accelerated the growth of our business, invested significantly in our portfolio, and released a number of next-generation, cloud-ready products. We look forward to working with CVC as we continue to scale our platform capabilities, with a keen focus on better serving our dynamic customer base."

Since CD&R’s investment in Epicor in 2020, the company has reportedly surpassed USD $1 billion in annual recurring revenue (ARR), buoyed by organic growth and a successful transformation into a SaaS-first company. Strategic manoeuvres, including 11 acquisitions, have expanded Epicor’s product capabilities and geographic reach. Earlier this year, Epicor unveiled its new Epicor Grow portfolio, which incorporates AI and Business Intelligence capabilities specifically tuned for the Make, Move, and Sell industries. This new portfolio includes Epicor Prism, a generative AI service embedded across the company’s Industry ERP Cloud solution.

"When we invested in Epicor nearly four years ago, there was an attractive opportunity to build on the company’s strong foundation and create an industry leader in enterprise SaaS," said Jeff Hawn, Epicor Chairman and CD&R Partner. "Epicor has grown into a preeminent global platform, led by a fantastic management team that has delivered more value for customers and organisations worldwide. We are confident that by leveraging our collective experience, we can continue to unlock Epicor’s potential. Our continued partnership emphasises our conviction in this next chapter, and we are enthused to continue to support Epicor’s growth with the experienced CVC team."

Aaron Dupuis, a Managing Partner at CVC, remarked, "We are thrilled to partner with Steve Murphy and the Epicor management team, along with CD&R, to support the company and its growth plans. Epicor has developed a differentiated value proposition based on its industry-leading SaaS product portfolio and demonstrated commitment to customer service excellence." He added, "We look forward to enhancing Epicor’s next chapter of growth with further SaaS migration and geographic expansion into international markets, while continuing to drive product innovation that will benefit Epicor’s many valued customers, partners, and employees."

"Steve and the rest of the management team have built a tremendous organisation at Epicor," said Harsh Agarwal, CD&R Partner. "We look forward to working with CVC to drive Epicor’s next phase of growth while supporting the company’s culture, which is essential to its success."

Barclays and Goldman Sachs & Co. LLC are serving as financial advisors, while Debevoise & Plimpton acts as legal advisor to CD&R and Epicor. Jefferies and Evercore are financial advisors to CVC, with White & Case serving as their legal advisor. CVC's investment will be facilitated through CVC Capital Partners IX. The transaction is subject to customary closing conditions and is expected to be finalised in Q4 2024.