Epicor Software wants to pave the middle of the road with gold. The company provides enterprise resource planning (ERP) software used primarily by midsized companies to integrate their back-office applications for manufacturing, distribution, and accounting, as well as customer relationship management functions, including sales, marketing, and customer support. Its software also includes collaborative applications that link employees, distributors, and suppliers, encompassing operations such as supply chain management, sourcing, and procurement. Private equity firm Apax Partners acquired Epicor in a 2011 for about $976 million.
Concurrently, Apax bought Activant Solutions, a specialist in enterprise software for retail and wholesale distribution businesses, which it combined with Epicor to create a larger ERP software vendor with a more diverse client base.
Epicor has operations worldwide and its software is available in 30 languages, but international sales have only historically accounted for about 30% of revenue. The company primarily targets customers with annual sales between $25 million and $1 billion. Its software suites are developed for specific industries such as manufacturing, distribution, retail, financial services, and hospitality. These midsized businesses don't need expansive IT operations, so Epicor has developed its software to meet the cost and scalability needs of smaller enterprises. The company also offers outsourcing services such as managed hosting from providers like IBM and NaviSite for businesses that can't yet afford to invest in hardware and personnel to support the technology.
In late 2010 the company bought Spectrum Human Resource Systems for about $16 million. Spectrum's Web-based HR and talent management software became the Epicor Human Capital Management (HCM) group. Around the same time the deal closed, Epicor closed its first deal with a Spectrum customer. Virtual Radiologic Corporation, which isuses Spectrum's HCM software, also uses Epicor ERP applications to automate its business processes and support its growth plans.
As it worked to broaden the appeal of its applications to potential clients and new industry niches, the company's product development efforts in 2011 resulted in new tools for uses ranging from electronic cataloging for the automotive aftermarket product industry (eCatalogs) to business process management for lumber and building material dealers (Catalyst).
Epicor is also adding more mobile and cloud computing functionality to its product line up. In 2011 the company rolled out Express, a streamlined version of its core ERP applications designed to enable small distributors and manufacturers (with smaller budgets) to use a hosted, Web-based ERP system.
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