Vista Equity Partners has officially closed its acquisition of Solera Holdings, parent company to LYNX Services, GTS and Glaxis. Other key investors include an affiliate of Koch Equity Development LLC, the investment and acquisition subsidiary of Koch Industries Inc., and an affiliate of Goldman, Sachs & Co.
Vista Equity Partners acquired the company for $55.85 per share in cash. The New York Times puts that at a $6.5 billion transaction. Koch Industries also owns a stake in Guardian.
Vista Equity Partners is a private equity firm focused on investing in software and technology-enabled businesses. It has more than $14 billion in cumulative capital commitments, according to its website.
“With the accelerated pace of change transforming the global marketplace, there are few companies like Solera that possess the market leadership, product innovation and extraordinary talent to drive the digital evolution of industries,” says Robert F. Smith, founder, chairman and CEO of Vista. “We are confident that Tony Aquila’s entrepreneurial spirit and dedicated team combined with Vista’s resources and experience will enable Solera to continue shaping the future of the industry and generate lasting value for its customers.”
Aquila, Solera’s founder, chairman and CEO, adds, “Since founding Solera, we have focused on being a global player by developing proprietary data and software solutions that help our customers meet the increasing digital demands of the automotive ecosystem. At Solera, we have a very strong and committed innovation culture, and believe that by partnering with Robert and his strong team, we can further achieve our goal to become the 20 percent or 80 percent provider of cognitive data sciences that help customers with all of the transactions across the car ownership lifecycle.”
Solera serves more than 195,000 customers in more than 75 countries, and manages more than 230 million digital transactions ranging from vehicle purchase to sale. Solera is also leveraging its proprietary algorithmic data systems to move beyond the garage into the digitally connected home, according to officials.
“Robert and I could not have chosen better partners for this transaction,” says Aquila. “With the deep global strength of investors like Koch and Goldman, and the increased flexibility from operating as a private company, we will deliver even greater value to our partners—and their customers—through innovative technologies that are essential to succeeding in today’s digital economy.”
In late January, Solera reported that revenues from collision and glass facility customers were $68.7 million for the second fiscal-year quarter, down 4.9 percent from the same period last year. The company did not break out its glass-only results.
“On a constant-currency basis, revenues from collision and glass repair facility customers for the second quarter increased 5.5 percent over the prior year’s second quarter,” according to the company’s report.
“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,” wrote Aquila in a recent SEC filing.