KKR & Co has hired Barclays to oversee the sale of Epicor Software, four sources familiar with the process told Buyouts.
KKR started the conversation with potential buyers a month ago, the people said. Multiple parties, including one PE firm, are involved in the auction, sources said.
The process represents a three-year hold for KKR, which acquired Epicor from Apax Partners in July 2016.
Apax’s investment dates back to 2011 when the U.K. buyout shop took Epicor private. Apax merged Epicor with peer Activant Solutions Inc. The combined deal was valued at $2 billion, a press release from that time said. Apax sold Epicor five years later, in 2016, to KKR. The deal was valued at $3.3 billion, according to sources. Epicor, at the time, generated $280 million of Ebitda, sources said.
Epicor, which provides application software to companies in manufacturing, distribution, retail and the services industries, has seen its Ebitda grow to $330 million, the sources said. The Austin company could now fetch between $4 billion and $5 billion, the people said.
Under KKR’s ownership, Epicor has completed several add-ons. Most recently, in July, Epicor acquired Majure Data, a provider of warehouse management solutions for the lumber and building materials industry.
In June, the company acquired MechanicNet Group, a provider of customer relationship management (CRM) for motor vehicle service businesses.
The Epicor process is geared toward large buyouts. Only a handful of private equity firms are capable of writing a check for over $4 billion, the sources said.
Executives for KKR declined comment. Epicor and Barclays could not immediately be reached for a comment.
Reuters first reported news of the Epicor’s sale.
Action Item: Check out KKR’s latest form ADV.