Thoma Cressey Equity Partners and LLR Partners Announce Sale of Prophet 21 Inc. to Activant Solutions Inc.

SAN FRANCISCO--()--Aug. 17, 2005--Private equity investment firms Thoma Cressey Equity Partners and LLR Partners announce the sale of their portfolio company, Prophet 21 Inc. to Activant Solutions Inc. for an aggregate purchase price of approximately $215 million, subject to certain adjustments. The transaction is expected to close in mid-September, subject to satisfaction of certain customary closing conditions.

Activant Solutions Inc. is a leading technology provider of business management solutions serving small and medium-sized businesses in four primary vertical markets: hardware and home center, lumber and building materials, the automotive parts aftermarket and wholesale distribution. Over 20,000 customer locations use Activant to manage their day-to-day operations.

Prophet 21 is a leading provider of vertical-market-focused enterprise software and services for the distribution industry. The company supports more than 3,400 customers, representing more than 12,000 locations and 95,000 users that use Prophet 21 software to conduct more than $55 billion of supply chain transactions annually. The company's flagship product, CommerceCenter, which manages all of a distributor's operations, is the leading Windows-based application designed for the distribution industry.

Founded in 1967, Prophet 21 completed an Initial Public Offering in 1994. In late 2002, Thoma Cressey Equity Partners, in partnership with LLR, led a management buyout of Prophet 21 in one of the earliest software take-private transactions.

"Prophet 21 is an excellent case study of Thoma Cressey Equity Partners' buy-and-build strategy in the software industry. Through operating improvements and seven add-on acquisitions, we were able to significantly increase shareholder value in a short period of time," said Orlando Bravo, chairman of the board for Prophet 21 and partner at Thoma Cressey Equity Partners.

Mitchell Hollin, director at Prophet 21 and partner at LLR added, "Prophet 21 is a leader in the distribution software industry, and Activant will provide the company with ample resources to continue its superior growth. We remain committed to the software industry and excited at the opportunity to support growing companies such as Prophet 21 in the future."

About Thoma Cressey Equity Partners

Thoma Cressey Equity Partners (TCEP) is a leading private equity investment firm that has been providing equity and strategic support to experienced management teams building growing companies for almost 25 years. The firm originated the concept of buy-and-build investing, which seeks to create value through the strategic use of acquisitions to accelerate business growth. TCEP's investment focus is on middle-market companies in the software, healthcare, business services and consumer products and services industries. The firm currently manages a software portfolio that generates more than $150 million in earnings. TCEP provides equity capital for buyouts, growth equity investments and going-private transactions. For more information, visit www.thomacressey.com.

About LLR Partners Inc.

LLR Partners Inc. is a $620 million private equity firm providing capital to middle market companies with growth potential, proven business models and outstanding management teams. LLR makes investments of $10 million to $40 million in a broad range of industries, with an emphasis on business services, healthcare, financial services and information technology. Based in the Philadelphia area, LLR seeks to create value through a variety of transactions, including buyouts, recapitalizations and expansion capital investments. For more information about LLR, please visit www.LLRPartners.com.

Contacts

Jill Lewis Communications Inc.
Jill Lewis, 312-286-1713
jill@jilllewiscommunications.com

Contacts

Jill Lewis Communications Inc.
Jill Lewis, 312-286-1713
jill@jilllewiscommunications.com