Apax IX agrees to acquire ECi Software Solutions
The Apax IX Fund (“Apax IX”) has today announced that it has reached a definite agreement to acquire ECi Software Solutions (“ECi”), a provider of enterprise resource planning (“ERP”) software solutions to small- and medium-sized businesses across the distribution, field services, building and construction and manufacturing industries.
Concurrent with this transaction, the Macola, JobBOSS and MAX businesses of Exact Software, which are all US-based providers of ERP software applications to a wide range of SMB manufacturers, will be combined with ECi. The combination of these businesses will create a diversified SMB-focused business offering end-to-end technology solutions.
AGA, whose shares are listed on the London Stock Exchange, provides investors with access to the investment expertise of Apax Partners through its investments in a diversified portfolio of private equity funds advised by Apax Partners as well as derived investments in debt and equity. In May 2016, AGA committed $350m to Apax IX.
Funds advised by Apax Partners to acquire ECi Software Solutions
Exact Software’s Macola, JobBOSS and MAX businesses will be combined with ECi
Current majority owner The Carlyle Group to continue as minority investor
Funds advised by Apax Partners (“Apax Funds”) today announced that they have reached a definitive agreement to acquire ECi Software Solutions, a provider of enterprise resource planning (ERP) software solutions to small-and medium-sized businesses (SMB) across the distribution, field services, building and construction and manufacturing industries.
ECi has invested heavily in its core verticals to transition all product sets to the cloud. The Apax Funds investment will accelerate this initiative as ECi continues to provide best-of-breed, industry-specific functionality.
Concurrent with this transaction, the Macola, JobBOSS and MAX businesses of Exact Software (a current Apax Funds portfolio company) will be combined with ECi. These businesses are based in the U.S. and provide ERP software applications to a wide range of SMB manufacturers.
The combination of Exact’s Macola, JobBOSS and MAX businesses with ECi will create a diversified SMB-focused business offering end-to-end technology solutions. The current ECi senior management team, including Chief Executive Officer Ron Books, will continue to lead the combined company, which will be known as ECi Software Solutions. It will remain headquartered in Fort Worth, Texas.
ECi is currently owned by affiliates of The Carlyle Group and Level Equity. Carlyle will retain a minority ownership position in the combined company. The transactions are expected to close in the third quarter of 2017, subject to customary closing conditions.
Jason Wright, a partner at Apax, said, “Apax is excited to back Ron and his team’s vision of accelerating organic growth through the transition to SaaS. The combination of Exact’s Macola, JobBOSS and MAX businesses with ECi will further enhance our offering in the manufacturing vertical and provides a compelling platform for future acquisitions.”
“Apax Funds’ acquisition of ECi is the start of another exciting chapter in our history of supporting the growth of small- and medium-sized businesses,” said Ron Books, CEO of ECi Software Solutions since 2009 and with the company for over 19 years. “As one of the largest private SaaS businesses in the world, this transaction will allow us to continue to deliver innovative solutions to our nearly 15,000 customers – expanding our footprint in our current vertical markets and beyond. Adding in Exact’s Macola, JobBOSS and MAX businesses gives ECi an even broader and deeper product suite to fit the ever-changing needs of manufacturers.”
Carlyle Managing Director Steve Bailey said, “It has been a tremendous pleasure working with Ron and his team to transition ECi to a software-as-a-service business model, a strategy Carlyle has employed in many software companies. We see significant upside in ECi and are pleased to continue as an investor and to partner with Apax and its vision for the continued growth of, and investment in, the company.”
The legal and financial advisors to Apax Partners are Skadden, Arps, Slate, Meagher & Flom LLP and Ernst & Young LLP, respectively. The legal and financial advisors to ECi are Latham & Watkins LLP, BofA Merrill Lynch and PwC, respectively.
Telephone: +44 (0)20 7666 6573
Telephone: +44 (0) 20 7872 6371
Telephone: +44 (0) 1481 749 700
About Apax Global Alpha Limited
AGA is a Guernsey registered closed-ended collective investment scheme incorporated as a non-cellular company that listed on the London Stock Exchange on 15 June 2015. It is regulated by the Guernsey Financial Services Commission.
AGA’s objective is to provide shareholders with capital appreciation from its investment portfolio and regular dividends. The Company is targeting an annualised Total Return, across economic cycles, of 12-15% (net of fees and expenses) including a dividend yield of 5% of Net Asset Value (NAV).
The investment policy of the Company is to make private equity investments in Apax Funds and Derived Investments which are investments in equities and debt derived from the insights gained via Apax Partners’ Private Equity activities. The Company’s portfolio is expected to be allocated in approximately equal proportions between Private Equity and Derived Investments, although the investment mix will fluctuate over time due to market conditions, investment opportunities, cash flow requirements, the dividend policy and other factors.
Further information regarding the Company and its publications are available on the Company’s website at www.apaxglobalalpha.com.
About Apax Partners LLP
Apax Partners is a leading global private equity advisory firm. It operates globally and has more than 30 years of investing experience. Apax Partners has advised funds that total over €40 billion in aggregate as at 30 June 2017*. Funds advised by Apax Partners invest in companies across four global sectors of Tech & Telco, Services, Healthcare and Consumer. These funds provide long_term equity financing to build and strengthen world_class companies. For further information about Apax Partners, please visit www.apax.com.
Apax Partners is authorised and regulated by the Financial Conduct Authority in the UK.
* Funds raised since 1981, commitments converted from fund currency to EUR at FX rates as at June 2017