Innovative Enterprise Solutions Are Needed Now More Than Ever
The Enterprise Software and Services landscape is continuously evolving as organizations face a business environment that is becoming increasingly difficult to effectively control and manage. While COVID-19 initially spooked investors, creating a lull in Enterprise Software and Services M&A in the middle part of the year, financial and strategic buyers are quickly realizing innovative and adaptive enterprise solutions are needed now more than ever. This was highlighted in August as the month concluded with the announcement of two of the largest Enterprise Software deals in the last several years.
In late August, AVEVA Group entered into an agreement to acquire OSIsoft from SoftBank, Mitsui & Co, and Estudillo Holdings for an estimated $5.0 billion. OSIsoft provides an open enterprise infrastructure platform to connect sensor-based data, operations, and people to help companies enable real-time and actionable insights. Their proprietary PI System works as a single hub for operations data, designed for innovative cloud-enabled scale and data sharing across enterprises. This acquisition will strengthen AVEVA’s position as a global leader in industrial enterprise software and help them to accelerate customers’ digital transformations. It also serves as a much needed win for Softbank who acquired a significant minority stake from TCV and Kleiner Perkins in 2017.
Also, during August, Clayton, Dubilier & Rice entered into a definite agreement to acquire Epicor Software Corporation from KKR for $4.7 billion. Epicor is a leading enterprise software provider delivering cloud-enabled services to more than 20,000 customers globally. Their main offerings focus around ERP Solutions with a specialization in the manufacturing, distribution, retail, and services sectors. This acquisition highlights the private equity industry’s interest in leading enterprise software companies as it comes only four years after KKR acquired the business for $3.3 billion from Apax Partners. Under KKR’s ownership, Epicor grew rapidly through a series of new product releases as well as through the acquisition of 1 EDI Source, Majure Data, Mechanicnet Group, and Astria Solutions.
In July, HelpSystems entered into an agreement to acquire GlobalSCAPE for ~$233 million. GlobalSCAPE is an enterprise software provider delivering managed and hosted solutions, including associated services for secure information exchange and data transfer & sharing for enterprises and consumers worldwide. The ability for organizations to securely move, transfer, and integrate data is more important than ever and GlobalSCAPE will help HelpSystems in their ability to provide innovative and secure system network solutions to its customers.
Earlier in the year, Forescout Technologies was acquired by Advent International Corporation for ~$1.9 billion. Forescout provides enterprise device visibility and control solutions to customers globally. As companies shift to cloud and decentralized networks, internal security solutions that help with visibility and network controls are becoming increasingly important. This has only been emphasized as COVID-19 has pushed many employees to work at home, making network visibility and security burdensome and difficult to manage. This acquisition adds to Advent’s portfolio and allows them to capitalize on the growing device visibility and control solutions industry.