4/19/2011 8:27:00 AM
NEWS BRIEFS
Activant Solutions To Be Acquired By Private Equity Firm
From Faspac to Activant ? History from the pages of FIN
Faspac Systems Inc. was founded in 1979 as Western Pacific Data Systems by Bill Vollmer and Dennis Marteeny of Western Fastener of San Diego, and Margaret Jackson and Neil Hadfield.
Jackson and Hadfield bought out Vollmer and Marteeny in 1981 and went on to sell more than 500 systems to the fastener industry over the next 22 years.
The Faspac Classic system began its development in 1979 as a software system for fastener distributors. In 1991 Faspac designed software for fastener manufacturers.
• In 2003 Prophet 21 acquired Faspac. Hadfield told FIN that given “the nature of today’s software industry environment combined with the slowdown of the economy, Faspac faced an uncertain future. We therefore decided to merge with a stronger industry player.”
• In 2005, Activant Solutions Inc. acquired Prophet 21 for $215 million. Both software firms specialized in the wholesale distribution industry. ©2011 GlobalFastenerNews.com
Distribution software provider Activant Solutions Inc. agreed to be acquired by funds advised by private equity firm Apax Partners. Activant is currently owned by investment funds affiliated with Hellman & Friedman LLC, Thoma Bravo, LLC and JMI Equity, and by management.
Apax also announced plans to acquire Epicor Software Corporation, a provider of enterprise business software solutions for the mid-market and the divisions of global 1000 companies.
Apax intends to combine Activant with Epicor to create one of the largest global providers of enterprise applications focused on the manufacturing, distribution, services and retail sectors. The combined company will be called Epicor Software Corp.
“This transaction is extremely positive for Activant’s customers, employees and investors alike,” said Activant CEO Pervez Qureshi. “Our market leadership and expertise in distribution perfectly complements Epicor’s expertise in the manufacturing and services sectors.”
“Additionally, with Epicor’s worldwide infrastructure, we will have the opportunity to service and support Activant products internationally, which is very important as our customers compete in an increasingly global business environment.”
The combined company will have over 30,000 customers, $825 million in annual revenues.
Under the terms of the agreement, all of Activant’s outstanding shares and stock options will be acquired for cash. Upon completion of the transaction all of Activant’s outstanding 9-1/2% Senior Subordinated Notes will be redeemed and Activant’s senior secured indebtedness will be repaid.
The Activant acquisition is conditioned upon the concurrent closing of Apax’s acquisition of Epicor, the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. Activant expects that the acquisitions will close by the end of the second calendar quarter of this year.
“We are extremely excited to be bringing together two of the premier enterprise software companies to create a global market leader,” said Jason Wright, a partner at Apax Partners. “Both Epicor and Activant customers will benefit from the combined entity’s increased scale, solutions portfolio and expanded service offerings.”
Activant will benefit from an “accelerated roadmap to international operations and additional supply chain and manufacturing functionality,” Wright added.
Jefferies & Company Inc. acted as M&A advisor to Activant and Simpson Thacher Bartlett LLP served as its legal counsel.
Founded in 1972, Activant provides customers with industry-specific software, professional services, content, supply chain connectivity, and analytics. The company services the automotive aftermarket, hard goods retailers, lumber and building materials dealers, industrial, electrical and plumbing supply houses.
Activant has operations in California, Texas, Colorado, Illinois, Pennsylvania, South Carolina, Canada, Ireland and the United Kingdom. Web: activant.com ©2011 GlobalFastenerNews.com
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