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SaaS ERP Firm Epicor Hunting For Buyers At A Price Tag Of $3.5 Billion

One of the leading SaaS ERP firms in the market, Epicor, is looking for a new buyer. According to reports published on ComputerWorld, Apax, the private equity firm which is the current owner of the billion dollar SaaS ERP product has put the business on sale at a price tag of around $3.5 billion. Various estimates peg the annual revenues of Epicor last year to be around $1 billion.

This news comes at a time when the SaaS ERP market is seeing a lot of new developments. Earlier this month, Microsoft announced that Dynamics AX 2012 R3 is now generally available much like the company's other ERP products like Dynamics NAV and Dynamics GP. As with the other products, Dynamics AX too shall be available on Azure through the authorized Microsoft vendors and not directly on Microsoft.

Both Epicor and Microsoft are targeting the small and medium sized businesses market that make up a significant volume of the overall SaaS ERP market. With Netsuite and Acumatica leading the pack followed by the likes of Ramco and Plex Systems, the SaaS ERP market is seeing stiff competition although is an industry that is ripe for disruption.

Although Epicor is unlikely to be bought by a direct competitor at this stage, given the large price tag, it does make sense given the consolidation that is impending in this industry. There is already a significant level of consolidation happening among the authorized partners of these SaaS ERP services. ERPGuru, a Netsuite partner acquired Cloud Commerce a couple of years back while Velocity acquired Titan Technology last year. With an increasing number of players in the SaaS ERP market, a consolidation among these players is definitely the logical next step.

Speculations are rife that Unit4, a private equity firm, could be a possible buyer of Epicor. Besides Unit4, Sage and Infor are seen as other possible contenders. With the ERP market projected to grow to $50 billion by next year, this is a wonderful time for technology businesses looking to gain a foothold in the ERP industry to consider a possible acquisition. This could hence be the perfect time for Apax to make Epicor available for potential bids.

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