M2 Technology Partners, a new private investment company focused on global acquisitions of software and services businesses, has launched with an undisclosed amount of funding from Accel-KKR. M2 is led by Mark Duffell and Michael Piraino, who previously were with Epicor Software Corp. (Nasdaq: EPIC) as president/COO and CFO, respectively.
M2 Technology Partners, LLC (“M2”), a private investment company focused on domestic and international acquisitions of software and services businesses, today announced its launch with sponsorship from Accel-KKR, a technology-focused private equity investment firm. M2 will focus its efforts on situations in middle market enterprise software businesses that require specific operational expertise, or are ready for consolidation. The newly-formed company is led by Mark Duffell and Michael Piraino, respectively, the former President and Chief Operating Officer of Epicor Software Corporation (“Epicor”) (NASDAQ: EPIC), and the former Executive Vice President and Chief Financial Officer of Epicor. Both senior software industry executives have a long track record of building and successfully operating enterprise software companies through organic and acquisitions-based growth strategies.
Accel-KKR makes majority investments in mid-market technology companies with a focus on acquisitions and recapitalizations of closely-held private companies; buyouts of divisions, subsidiaries and business units from larger enterprises; and going-private transactions of public companies. The formation of M2 and the investment made in the new company by Accel-KKR reflects a commitment to combining Accel-KKR's growth-oriented philosophy with strong operating professionals who have specific domain expertise in technology. In addition to leading M2, Messrs. Duffell and Piraino will serve as advisors to Accel-KKR and be members of its Operating Advisory Committee.
Mark Duffell, formerly president and chief operating officer at Epicor, was responsible for the company's worldwide operations (2,600 employees), headed the strategic planning committee and was the chief architect of successfully integrating numerous acquisitions, including Scala Business Solutions, CRS Retail Systems (a prior Accel-KKR investment) and NSB Retail Systems. Mr. Duffell brings extensive domestic and international operational business experience to the partnership.
Michael Piraino, formerly executive vice president and chief financial officer at Epicor, was responsible for the company's worldwide accounting and finance, treasury, tax, information services, investor relations, legal and human resources. While at Epicor, Mr. Piraino was a member of the strategic planning committee, led due diligence activities and negotiated all acquisitions playing a significant role in the Scala Business Solutions, CRS Retail Systems and NSB Retail Systems acquisitions. He also completed a $230 million convertible note offering and a $250 million bank facility during his tenure.
Tom Barnds, Accel-KKR Managing Director, said, “We are extremely pleased to be joining forces with Mark and Michael. We have known them both for a number of years and we have great respect for their abilities.” Ben Bisconti, Accel-KKR Managing Director, added, “They have a strong demonstrated track record of acquiring, operating and growing world class enterprise software businesses and we look forward to partnering with them on building M2.”
Mark Duffell, M2 Technology Partners Co-Founder and CEO said, “The opportunity to work with the talented team at Accel-KKR who bring their network of contacts, financing capability and knowledge in the mid-market technology industry is very exciting to both Michael Piraino and myself. The blend of the core competencies of Accel-KKR and M2 creates a powerful acquisition vehicle in the mid-market enterprise software and services sector, a space where there continues to be strong potential for value creation.”
Details of Accel-KKR's investment in M2 Technology Partners were not disclosed.
Accel-KKR is a technology-focused private equity firm that invests primarily in technology businesses with $15 million to $150 million in revenue that are well positioned for top-line and bottom-line growth. At the core of Accel-KKR's investment strategy is a commitment to developing strong partnerships with the management teams of its portfolio companies and a focus on building value through the contribution of unique financial, strategic, technical, and operational resources. Accel-KKR has a particular focus on the following transactions: Recapitalizations of family-owned or closely-held private companies, divisional buyouts of larger companies, and going-private transactions. For more information, please visit www.accel-kkr.com.
About M2 Technology Partners
M2 is technology-focused firm formed to acquire mid-market enterprise software and service businesses requiring specific operational expertise or are ready for consolidation. For more information, visit www.m2technologypartners.com.