KKR Agrees to Buy Software Maker Epicor from Apax Partners (July 5, 2016)
http://www.wsj.com/articles/kkr-agrees-to-buy-software-maker-epicor-from-apax-partners-1467725967
In today’s challenging environment should you be concerned that Epicor has been sold again?
How does the sale of Epicor affect the ERP industry?
Will the sale alter your company’s decision to move off their legacy system to Epicor?
“In 2014 Epicor lost $20.8 million on $995 million in sales.
Epicor, while moving to cloud solutions, is an “old world tech company”… an ERP company for manufacturers and distributors. For a company that either isn’t making money or barely making money, for another private equity company to come along and pile on additional debt and then have to make investments into either R&D and/or acquisitions and then seek an exit strategy in 3-7 years makes one wonder.”
http://www.electricaltrends.com/2016/06/epicor-for-sale-again.html
KKR & Co. L.P. is an American multinational private equity firm, specializing in leveraged buyouts, headquartered in New York City.
-
- Will Epicor turn out to be another RJR Nabisco buyout for KKR?
- KKR buys RJR Nabisco in 1989 ….. in 1995, KKR would divest itself of its final stake in RJR Nabisco https://en.wikipedia.org/wiki/Kohlberg_Kravis_Roberts
- Unlike Microsoft, KKR is not a software company.
Microsoft “R&D spending in 2015: $12.4 billion … Microsoft, the biggest spender among software and Internet companies, likes to refer to the “small r” and the “big D.” The company prides itself on developing products for the current market while searching for the next big thing. “
While others are divesting, Microsoft is investing!
