Solera Signs Agreement To Purchase Parent Company Of Service Repair Solutions
Solera Holdings, Inc., a leading global provider of software and services to the automobile insurance claims processing and decision support industries (www.solerainc.com), announced that it has signed a defi nitive agreement to purchase equity interests in a parent company of Service Repair Solutions, Inc. (SRS) from an affiliate of Welsh, Carson, Anderson & Stowe (Welsh Carson), a leading private equity firm (the Joint Venture).
SRS is a leading provider in the $200B service, maintenance and repair market with proprietary databases and workflow solutions. The combination of Solera and SRS will expand Solera’s reach deeper into household decisions related to the total cost of automobile ownership.
SRS’s solutions help auto dealers and mechanical repair shops to increase their efficiency, profitability and customer loyalty. SRS’s diagnostic and repair database includes over 800,000 user- and expert-generated, mechanical diagnoses, and is utilized by approximately 225,000 auto technicians in 50,000 repair shops in the United States and Canada.
SRS’s dealer services business also leverages a proprietary database of more than 78 million repair orders, 28 million completed inspections and 9 million pages of OEM data used by approximately 1,000 auto dealers.
Tony Aquila, Solera’s founder, Chairman and Chief Executive Offi cer said, “We are thrilled to be working with Welsh Carson and SRS’s management team, as we believe we can help them build upon the double-digit top-line growth that SRS has enjoyed over the last five years.”
“Partnering with Solera gives SRS the benefit of the strong operating culture that has driven Solera’s solid track record. Furthermore, Solera is uniquely qualified to accelerate SRS’s international expansion through its global footprint,” said Sanjay Swani, General Partner of Welsh Carson. “We look forward to working with Solera and SRS management.”
Under the terms of the Joint Venture agreements, Solera will purchase at least 50 percent of the Joint Venture shares for approximately $289 million. Solera will have the right to call Welsh Carson’s Joint Venture shares, and Welsh Carson will have the right to put its Joint Venture shares to Solera. Solera will have operational control of the Joint Venture, and Tony Aquila will be its chairman. The transaction is expected to close in Solera’s second quarter of fiscal year 2014.