Activant buys Prophet 21

Staff -- Industrial Distribution, 9/1/2005

Technology giant Activant Solutions, Inc. announced plans to acquire Prophet 21, Inc., one of the best-known software companies in the wholesale distribution arena, for $215 million. The deal is expected to close in mid-September.

Prophet 21's product offering and more than 3,400 customers will enhance Activant's position in the wholesale distribution segment, which complements its established presence in the hardware and home center, automotive aftermarket and lumber and building materials vertical markets.

"This latest acquisition is part of Activant's ongoing growth strategy to become the premier provider of vertical business management solutions, serving small and medium-sized businesses," said Larry Jones, CEO of Activant Solutions.

Since 1967, Prophet 21 has worked with distributors in many wholesale distribution verticals, such as industrial, fasteners, electrical, fluid power, medical, HVAC, janitorial and others. Commerce-Center, Prophet 21's next-generation software solution, combines the power of SQL Server and the Windows operating system in a product designed especially for distributors.

"Both Activant and Prophet 21 are focused on helping distributors better run their businesses end-to-end," Chuck Boyle, CEO of Prophet 21, said in a prepared statement. "By leveraging the combined resources of both companies, we can continue to deliver quality customer service and leading-edge products that will help our customers grow their businesses to the next level."

In a follow-up interview with Industrial Distribution, Boyle said he's excited about the deal and indicated that there would be further acquisitions down the road.

"This is a great fit for both companies," Boyle said.

Prophet 21 has been on the acquisition trail itself over the past few years. In 2003, it acquired Faspac and Systems Design, and last year acquired Trade Service Systems, Dynamic Data Systems and Distributor Information Systems Corp. Two months ago, it acquired Stanpak Systems, a software supplier to the paper, safety, cleaning, and packaging industries.