Private equity firm Clayton, Dubilier & Rice is exploring options including the sale of a stake in Epicor Software, which counts Formula One racing team RB among customers for its business software, according to people familiar with the matter.
CD&R is working with investment bank Barclays as it weighs selling up to a 50% stake in Austin, Texas-based Epicor, the sources said, adding that the sale process could attract interest from other buyout firms.
A deal could value Epicor between $7 billion and $9 billion, the sources said, requesting anonymity as the discussions are confidential. The sources added that the process is at an early stage and cautioned that no deal is certain.
In 2020, CD&R acquired Epicor from KKR for $4.7 billion. CD&R and Barclays declined to comment, while Epicor did not immediately respond to a request for comment.
Epicor provides back-office and sales software to mid-sized companies in industries including retail, distribution and manufacturing. In April, the company said it generated more than $1 billion in annual recurring revenue (ARR), driven by a jump in orders from enterprise customers who are rapidly adopting artificial intelligence tools.
Epicor, which has over 4,100 employees in 34 countries, counts more than 21,000 small and medium-sized businesses as its customers, according to the company’s website.
Buyout firms have been actively pursuing deals with software businesses, which typically generate steady returns for investors due to their predictable subscription revenues.
In July, Bain Capital agreed to acquire Envestnet in a deal that valued the financial software vendor at $4.5 billion, including debt. In February, software firm Everbridge was taken private by tech-focused buyout firm Thoma Bravo in a deal worth $1.5 billion.
