KKR Stock Down on Epicor Software Deal

KKR stock is falling this afternoon after the investment firm reached a deal with Apax Partners to purchase Epicor Technology.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- KKR (KKR) - Get Report stock is down 2.76% to $12 this afternoon after the company announced it would buy Epicor Software from Apax Partners.

KKR, a New York-based investment firm, will buy Epicor Software, a Feasterville-Trevose, PA-based enterprise software company, for $3.3 billion, Bloomberg reports. The number has not been confirmed by the companies.

This is KKR's largest technology purchase in nine years.

Apax had previously accepted bids for Epicor in 2014 but turned them down, the Wall Street Journal reported at the time. The failed deals were valued at $3 billion.

The company is "very pleased" to partner with Epicor to "accelerate its next phase of global growth," head of technology at KKR, Herald Chen, said in a statement on Tuesday.

KKR sees Epicor's team, the company's focus on customers and its cloud technology as positioning Epicor well to build on its prior success, Chen added.

Separately, TheStreet Ratings rated this stock as a "hold" with a ratings score of C-.

Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, TheStreet Ratings also finds weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

You can view the full analysis from the report here: KKR

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

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