Apax Partners to buy Epicor, Activant for $2 billion

BANGALORE (Reuters) – Private equity firm Apax Partners (APAX.UL: Quote, Profile, Research) agreed to buy Epicor Software Corp (EPIC.O: Quote, Profile, Research) and privately held Activant Solutions Inc in deals totaling about $2 billion to create one of the largest global providers of enterprise applications.

Apax will pay $976 million for Epicor, which makes enterprise software for mid-cap companies. Activant provides business management software to mid-market retail and wholesale distribution businesses.

After the merger of Epicor and Activant, the combined company would have over 30,000 customers and $825 million in annual revenue.

Under the deal terms, Epicor shareholders will get $12.50 a share, a premium of 11 percent to Epicor’s Friday closing of $11.24 on Nasdaq. Deal terms for Activant were not disclosed.

Apax has lined up support for the deal from a third of Epicor shareholders, including Elliott Associates, the companies said in a joint statement.

Apax Partners, which has been very active in the deals of late, recently backed software firm iGate (IGTE.O: Quote, Profile, Research) in buying a majority stake in India’s Patni Computer Systems (PTNI.BO: Quote, Profile, Research) for $1.2 billion.

Epicor shares were trading up 12 percent at $12.55 in trading before the bell on Monday.

(Reporting by Supantha Mukherjee in Bangalore; Editing by Sriraj Kalluvila)

Apax Partners to buy Epicor, Activant for $2 billion