S&P affirms Activant

Standard & Poor's said it affirmed its B corporate credit rating on Activant Solutions Inc.

The outlook remains stable.

The action followed the announcement of Activant's acquisition of Intuit's Eclipse Distribution Management Solutions business, the agency noted.

The recovery rating on the senior secured credit facility, which now consists of a $485 million first-lien revolving credit facility and includes the $95 million add-on, remains unchanged at 2, indicating the expectation for substantial recovery in the event of a payment default or bankruptcy, S&P said.

The ratings on Activant reflect its narrow business profile, acquisitive growth strategy and high debt leverage, S&P said, noting that these are offset by a leading position in its addressed vertical markets, a significant amount of recurring revenue and consistent profitability.

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