Consolidation in the business applications arena continued today with the announcement that midmarket provider Epicor Software Corp. and Scala Business Solutions plan to merge.
The cash-and-stock deal is valued at $87 million. It is expected to close in early 2004.
Together, the companies say they would be the largest independent midmarket provider of ERP, CRM and supply chain applications based on Microsoft's .NET platform with $250 million in annual revenue and more than 20,000 customers.
Irvine, Calif.-based Epicor would give one of six seats on its board of directors to a representative from the Amsterdam, Netherlands-headquartered Scala.
The companies expect joining forces will give them added global reach, as well as help them better serve some key vertical markets.
Today's announcement is the latest consolidation activity in the CRM midmarket. On Wednesday Onyx Software Corp. launched an unsolicited takeover bid for rival Pivotal Corp., roughly one month after Pivotal agreed to be acquired by a private equity firm.