Four months after a buyout bid from a private equity firm troubled the waters at Epicor Corp., the mid-market ERP specialist has struck a deal with its suitor to maintain control of the company.
Last October, hedge fund Elliott Associates offered repeatedly to buy Epicor. Each time, the ERP provider rebuffed the offer.
Under the terms of the deal announced today, Elliott Associates has agreed to a “standstill period” of approximately one year, essentially barring Elliott from presenting further buyout offers. During that time, Elliott can aggregate as much as 14.99% of Epicor’s common stock — it already owns more than 13% — and $100 million of its debt offerings. Under the conditions of the agreement, Epicor has also expanded its board of directors from five members to seven.