Apax Funds boost investment in ECI Software Solutions – Analysts
Apax Partners LLP, a prominent global private equity firm, has recently finalized an agreement to enhance its ownership stake in ECI Software Solutions. This company is recognized as a leading provider of cloud-based business management software tailored to specific industries on a global scale. Following the transaction, the Apax Funds will become co-owners of ECI alongside Leonard Green & Partners, L.P. (LGP), marking a significant development in the company’s evolution.
The partnership between the Apax Funds and ECI began back in 2017 when the Apax Funds initially invested in the company. Since then, they have been instrumental in propelling ECI into a top-tier Software as a Service (SaaS) business by strategically investing in core products, expanding internationally, and executing multiple acquisitions, totaling 27 since their initial involvement. In 2020, the majority ownership of ECI was transferred to LGP by the Apax Funds, who retained a minority share in the company.
Moving forward, the collaborative efforts of the Apax Funds and LGP will focus on further expanding ECI’s presence in its core sectors while strategically pursuing additional acquisitions in a fragmented market. ECI has marked notable growth in recent years, both organically and through targeted acquisitions, boasting a customer base of 25,000 businesses across 90 countries worldwide and a workforce of 2,100 employees spread across 20 offices.
With over 20 years of experience in software investment exceeding $10 billion, the Apax Funds hold a position of credibility in the industry. Supported by a seasoned investment team and Apax’s Operational Excellence Practice, the group is well-equipped to identify and implement strategies that drive value creation.
Jason Wright, a Partner at Apax, expressed his optimism about the growth of ECI, emphasizing the company’s substantial EBITDA expansion and accelerated organic growth since their initial investment. Furthermore, Adam Garson, another Apax Partner, highlighted ECI’s stronghold in their target markets and underscored their commitment to fueling further growth through continued partnerships with the management team and strategic allies.
Trevor Gruenewald, the CEO of ECI, conveyed gratitude for the longstanding partnership with the Apax Funds and LGP and acknowledged their pivotal role in propelling ECI to its current market leadership status. The increased investment from these partners, combined with their operational expertise, is expected to propel ECI towards continued success by leveraging opportunities for growth and expansion into new areas via strategic acquisitions.
The sentiments were echoed by Usama Cortas and Tommy Yin from LGP, who praised ECI’s consistent performance, growth trajectory, and the management’s vision to fortify the company’s software offerings further. As they look forward to the next phase of ECI’s development, the collective efforts of Apax, LGP, and GIC are poised to support the company through its growth journey.
In conclusion, the recent developments at ECI Software Solutions stand as a testament to the collaborative efforts between key players in the private equity sector who are dedicated to fostering growth and innovation in the software industry. The ongoing commitment to strategic investments, operational excellence, and targeted acquisitions underscores a shared vision for driving value creation and solidifying ECI’s position as a market leader in the realm of business management software.
