Moody's affirms Activant

Moody's Investors Service said it affirmed Activant Solutions, Inc.'s B2 corporate family rating and the B1 rating of its senior secured term loan facility upon its proposed $95 million upsizing.

The agency said that proceeds of the term loan will be used to finance the acquisition of the Intuit Inc.'s distribution management solutions business.

The B2 corporate family rating reflects the company's high leverage levels, potential sensitivity to an economic downturn, given the high leverage, likely continuation of the recent pace of acquisitions and challenges in the automotive vertical market, the agency noted.

Moody's said that the rating also considers Activant's expertise and strong customer following in the automotive, hardline/lumber and wholesale and distribution markets, the critical nature of the products to the end user's business and the recurring nature of a large portion of their cash flows.

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