Private equity firm Apax Partners is continuing its long running search for a buyer for Epicor, an enterprise resource planning (ERP) software vendor. The firm first bought Epicor for $2 billion in 2011, an investment that seems to have paid off somewhat after the ERP company generated over $1 billion in revenue in 2013. Despite the company’s winning year, Apax is apparently looking to divest itself of the business that is less profitable than hoped, asking for $2.5 to $3.5 billion from potential buyers.
Why Buying Epicor Could Be an Extremely Savvy Investment
Epicor recently finished optimizing its most popular ERP software suite for Microsoft technologies and also completely revamped its user interface. It’s relationship with users of Microsoft’s business technology and its continued look to improve product usability has made Epicor a favorite among many business owners.
And that could be the reason someone, whether a rival ERP vendor or another company looking to diversify, will end up buying the company. The fact that Epicor comes equipped with a legion of loyal customers coupled with ERP sales expected to reach $32.6 billion by 2018 could make such an acquisition a very lucrative choice, indeed.
ERP software has increasingly been seen as an effective way of shortening the cash cycle from invoice to payment; increasing employee productivity in all departments; and giving employees company information as it pertains to their jobs. It’s because of these benefits that 70% of businesses using ERP software say that using the technology has improved their financial reporting abilities, leading directly to better businesses. Although Epicor doubtlessly needs some tweaks — something a competitor could bring in an acquisition — there is no doubt that a benefactor willing to put in the work and capital could find the purchase of Epicor a very savvy move, with customers practically lining themselves up at the door.