Private equity firms buy Activant

Staff -- Industrial Distribution, 4/1/2006

Activant Solutions, Inc. announced March 13 that it had signed an agreement to be acquired by two private equity investment firms, Hellman & Friedman LLC and Thoma Cressey Equity Partners.

The firms will acquire Activant and all its subsidiaries from investment funds affiliated with HM Capital Partners LLC, which has approved the transaction.

Activant provides vertical business management software solutions. They primarily serve small- and medium-sized retail and wholesale distribution businesses. They estimate that more than 30,000 customer locations use Activant's services.

Activant itself had acquired Prophet 21 in September, 2005 and Speedware Corp. in March, 2005. Activant's headquarters are in Austin, Texas, with other operations in California, Colorado, Connecticut, Illinois, New Jersey, Pennsylvania, South Carolina, Utah, Canada, France, Ireland, and the United Kingdom.

"We are very impressed with Activant's market-leading position, vertical market expertise, and strong management team," said David Tunnell, managing director of Hellman & Friedman. "Activant exemplifies the type of company in which we like to invest."

Orlando Bravo, managing partner of Thoma Cressey Equity Partners, added that, "There are significant opportunities to continue and even accelerate Activant's growth trajectory...."

Hellman & Friedman LLC is a San Francisco-based private equity investment firm with additional offices in New York and London.

Thoma Cressey Equity Partners is a private equity investment firm that, in the software industry, has amassed earnings in excess of $150 million. Ironically, Thoma Cressey, along with LLR Partners, acquired Prophet 21 in 2002.

The transaction is subject to regulatory approvals, and is expected to close during Activant's third fiscal quarter ending June 30.

"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."