Prophet 21 Inc., Yardley, Pa., has entered into a merger agreement with an entity formed by private equity firms, Thoma Cressey Equity Partners Inc. (TCEP) and LLR Partners Inc. (LLR).

Under the merger agreement, all of the issued and outstanding shares of common stock and the money options of Prophet 21 will be acquired for cash in the amount of $16.30 per share.

“This transaction brings to Prophet 21 the opportunity to move forward more aggressively,” said Chuck Boyle, Prophet 21's president and CEO.

Prophet 21 management will continue to operate the business under its current name and operating structure.

“This transaction fits very well with our strategy of buying strong franchises in large and fragmented industries,” said Orlando Bravo, a partner with TCEP, which has offices in San Francisco and Chicago.

Mitchell Hollin, a partner with Philadelphia-based LLR, said Prophet 21 is strategically positioned for significant growth.

The closing of the merger is subject to customary conditions, including approval by the company's stockholders. The merger is expected to close in the first quarter of 2003.