Irvine business software maker Epicor Software Corp. said last week it bought Newburgh, N.Y.-based CRS Retail Systems Inc. for $121 million in cash.
CRS provides software to retailers such as Coach Inc. and Barnes & Noble Inc. Epicor bought CRS from Menlo Park-based private equity firm Accel-KKR LLC.
Epicor makes accounting and other software that integrates data from production, distribution, accounting, sales, marketing and customer support.
The company said it expects CRS to add to profits next year and bring about $70 million in added sales for 2006.
The buy allows Epicor to supply retailers with a range of software, said George Klaus, the company’s chief executive.
Software from CRS lets retailers integrate data from sales, ordering, inventory and other operations.
Kathy Frommer, CRS’ chief executive, is set to continue running the company as a unit of Epicor. Her title at Epicor is general manager.
Epicor reaffirmed its outlook for the rest of the year, saying it doesn’t expect CRS to have much impact.
For 2006, the company said it expects sales of $384 million. Analysts had expected $314 million before the buy.
This year, analysts expect Epicor to post sales of $286 million.
Next year, Epicor said it expects profits of about $43 million, on par with what analysts expect.
The company said it hopes to save about $1 million a year from cost cutting with the CRS buy. It said it will incur acquisition and restructuring costs in the current quarter.
In 2004, Epicor paid nearly $90 million for Netherlands-based Scala Business Solutions NV.
,Michael Lyster
