Solera Holdings, parent company to LYNX Services, GTS and Glaxis, will operate as a privately-owned company once Vista Equity Partners, Koch Industries and Goldman, Sachs & Co., close the deal to acquire 100 percent of the outstanding shares of Solera common stock for $55.85 per share in cash, according a newly filed U.S. Securities and Exchange Commission (SEC) document.
“As we enter the next phase of our global expansion, becoming a private company will provide us with more operating freedom and flexibility than we have had as a public company,” writes Tony Aquila, Solera’s founder, chairman and CEO, in the SEC filing. “We believe these benefits will enable us to better support our customers and partners with our world-class services, as well as with additional and faster proprietary innovation.”
The acquisition, which is valued at $6.5 billion, including Solera’s existing debt, is expected to close “no later than the first calendar quarter of 2016,” according to the SEC filing.
“Upon the successful completion of the acquisition, Solera will once again become a privately-held company. Solera’s common stock will no longer be traded on the New York Stock Exchange, as the company will be entirely owned by a group of private investment firms,” according to the document.
Solera held its initial public offering (IPO) in May 2007 with a common stock price of $16 per share (valued at $420 million). The private equity investors are purchasing the company for $55.85 per share in cash, including existing debt.
“Since our inception, Solera has expanded to 78 countries, invested in over 35 companies, and built a highly distinguished team that has created powerful technology platforms that span the lifecycle of automobile and property ownership,” writes Aquila in the SEC filing. “Within the automotive industry, we’ve engaged the 10 percent of motorists who file car insurance claims each year (a contact-driven industry), as well as the 90 percent who are more frequently involved in buying, maintaining, repairing and selling their vehicles (a content-rich ecosystem). Through the auto, we’ve also started to move into the home.”
Solera had announced in late August it was “exploring a variety of strategic alternatives,” including a possible sale of the company.
Pittsburgh Glass Works (PGW) announced the sale of its Insurance and Services Division (I&S), which included LYNX Services, GTS and Glaxis, in May 2014.
To view the SEC filing, click here.