Solera Holdings Inc. has acquired 100 percent of the equity interests in CAP Automotive. CAP provides real-time valuations and specifications for new and used vehicles in the United Kingdom. On an annual basis, CAP currently processes over 18 million valuations, according to officials.
Solera purchased the equity interests of CAP’s parent company for approximately $463.8 million. All of the purchase price is payable in cash, most of which was paid at completion of the deal. A portion of the purchase price payable to management equity holders has been deferred and will be paid on a time-based schedule following completion.
Through its valuation benchmark, CAPclean, and proprietary solutions, CAP has established integrated, long-term relationships with the leading dealers, finance companies, auction houses, fleets and original equipment manufacturers in the U.K., according to officials.
For the 12 months ended September 30, 2014, CAP’s run rate revenue and adjusted EBITDA were $46.0 million and $26.7 million, respectively. The acquisition will provide Solera with a 12-year tax benefit with an estimated present value of approximately $35.3 million.
“The acquisition of CAP is the latest in a series of investments in our risk and asset management strategy, adding capabilities that create a unique ‘digital garage.’ Expanding our valuation services through CAP will connect our investments and grow our presence in each phase of the vehicle lifecycle, from purchase, through SMR, to sale or salvage,” says Tony Aquila, Solera’s founder, chairman and CEO. “Expanding from the U.K. across advanced European markets, CAP data will enable households to make informed, market-driven decisions affecting their automotive assets,” he adds.