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EPICOR, ACTIVANT COMBINE - NEXT?

George KlausThe combination of Epicor Software with Activant under the name Epicor Software has been completed as the $800 million operation falls under the private ownership of Apax Partners. Outside of the fact that two companies that reported financial results now won't be there, there are a lot of things left to find out. One of which is the management structure, which a press release on the Epicor site says will be forthcoming in a few weeks.

It should be safe to guess that Epicor CEO George Klaus would retire. At least the betting money has been that when he returned to Epicor it was to sell the company. The press release also mentions Epicor's strength in manufacturing and services and Activant's in distribution. The last look at the financials came with the report of results for the 12 months ended March 31. This was for Eagle Parent, an Apax company utilized in the purchase of Activant and Epicor and it shows that Epicor had $453.3 million in revenue and Activant had $369.6 million for the period for a pro forma total of $411.5 million. Epicor lost $7.89 million and Activant earned $15.7 million. Adjustments produced a pro forma loss of $49.6 million. The biggest adjustment was a $48.4 million in a recalculation of depreciation and amortization. The final purchase price was $1.77 billion with $1.4 billion of that coming from financing from a syndicate of banks.

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