Activant Solutions Inc., Austin, Texas, a provider of business software that bought Prophet 21 Inc., Yardley, Pa., in September 2005, will have new owners.
The company agreed to be acquired by funds affiliated with private equity investment firm Hellman & Friedman LLC and private equity investment firm Thoma Cressey Equity Partners. The firms will acquire Activant Solutions Holdings Inc. and all its subsidiaries from investment funds affiliated with HM Capital Partners LLC. Hellman & Friedman will own a majority interest in the company, while Thoma Cressey will hold a significant minority stake. Management will also have an interest. The deal is valued at about $785 million.
No changes are expected to Prophet 21. "This is just an equity management change," said a spokesperson for Activant.
"Over the past year, Activant has been on a steady and fast-paced climb in the market through organic growth and acquisitions," said Larry Jones, CEO of Activant Solutions. "While we have looked at a number of strategic options to best position the company for the future, we believe we have found the right partners in Hellman & Friedman and Thoma Cressey to continue the company’s success."
Activant Solutions provides business management solutions to small- and medium- sized businesses in four primary vertical markets: wholesale distribution, hardware and home center, lumber and building materials, and the automotive parts aftermarket. Activant Solutions also provides software and related services for IDEA’s IDW2. IDW2 is a central repository for pricing and product data for the electrical wholesaling industry.
Activant filed to go public last June, but the initial public offering did not go forward. Instead, in September 2005, the company bought another software maker, Prophet 21. Activant also bought Montreal-based Speedware Corp. in 2005.
Orlando Bravo, managing partner of Thoma Cressey, said there were "significant opportunities to continue and even accelerate Activant’s growth trajectory."