Cars.com announced on Thursday that it acquired one of the first Emerging 8 honorees spotlighted at the Automotive Intelligence Summit.
According to a news release, Cars.com signed a definitive agreement to acquire CreditIQ, a fintech platform that provides instant online auto finance screening and approvals to facilitate online vehicle buying.
Executives said consideration for the transaction will be $30 million at closing, funded using cash on hand, with the potential for up to an additional $50 million in performance-based cash consideration to be earned over the next three years.
CARS said the transaction is expected to close this month.
Executives mentioned the technology will be integrated across the CARS platform during the first quarter of 2022.
CARS said it will monetize the platform upon rollout, generating revenue directly from finance companies on a per-transaction basis.
“The acquisition of CreditIQ technology facilitates CARS’ entry into the rapidly-growing, multi-billion dollar auto finance market, expanding our TAM beyond the $35 billion auto advertising and dealer technology markets we operate in today. We’re excited to participate in this space with powerful digital solutions for dealers that facilitate online financing and enable them to better compete,” CARS president and chief executive officer Alex Vetter said in the news release.
“The acquisition of this scalable technology supports our vision of creating frictionless omni-channel experiences and further growing our platform capabilities for buyers and sellers, building on our competitive advantage and delivering additional value to our shareholders,” Vetter continued.
CARS highlighted dealers can gain access to CreditIQ’s advanced digital financing technology, which can facilitate the completion of the finance process online across the CARS platform via Dealer Inspire’s 5,200 websites, its digital retailing platform “Online Shopper,” and the Cars.com marketplace.
CARS said dealers also can benefit from improved efficiency, increased profits per vehicle retailed (PVR), greater lead conversion and deeper attribution data and insights.
In addition, the technology offers automated decisions from dealers’ preferred networks of finance companies; what CARS called a “differentiator” in the market specific to the CreditIQ offering.
CreditIQ also has built a Lending-as-a-Service (LaaS) framework that can enable dealers, marketplaces, OEMs and automotive software providers to use the same advanced fintech capabilities.
Founded in 2014 by automotive and financing software experts Bill Liatsis, Anthony Liatsis and Bill Gerhard, CreditIQ is headquartered in New York and develops digital retail financing technology designed to facilitate online car sales and streamline in-store processes for auto dealers.,
“CreditIQ’s technology was created to help dealers be more efficient and profitable, said Bill Liatsis, who is CEO of CreditIQ. “We are excited to join forces with a company who shares our dealer-centric approach, helping local retailers better compete by the use of better technology.
“Integrating with the CARS connected platform allows us to continue to equip a much broader audience of consumers, dealers and lenders to be successful in the growing digital financing sector,” Liatsis went on to say.
One of the Silver Sponsors of Used Car Week isn’t just spending its financial resources to help bring together the industry for the leading event that begins on Nov. 15 at the Red Rock Resort in Las Vegas.
On Tuesday, global data analytics provider Verisk announced that it acquired Data Driven Safety, a leading public record data aggregation firm that specializes in driver risk assessment in the United States.
According to a news release, the acquisition will expand Verisk’s robust auto insurance analytics, providing insurers with information to further refine underwriting, improve the customer experience and promote public safety.
Data Driven Safety (DDS), with its unique data collection and management platform, gathers information on traffic citations, vehicle accidents and driving records from public sources.
“Adding billions of driver risk records improves the granularity of our innovative risk-indicator solutions and will help customers advance their digital transformation strategies,” said Doug Caccese, president of ISO personal lines at Verisk.
“Verisk will be able to provide insurers with a more complete and cost-effective view of auto risk while enabling them to tailor the purchase experience and reward customers that have a history of safe driving practices,” Caccese continued in the news release.
Verisk added that it did not acquire the criminal conviction (eLuminateHR.com) or health care cost recovery (MVAreCOUP.com) businesses, which will be owned and operated independently by Safer Public, LLC.
“DDS’s mission is to promote public good through the use of public record information,” Data Driven Safety chief executive officer Jason Murphy said. “By joining forces with Verisk, we will be able to increase our reach, enhance our solutions and help a wide range of customers identify safer risks through informed decisioning.”
Verisk said it is building the future auto insurance ecosystem for insurers today
Recent Verisk analysis suggested that riskier driving behavior — that emerged as traffic decreased during the pandemic lockdowns — led to more severe violations and accidents and appears to be carrying forward as miles driven continue to climb.
To modernize auto insurance underwriting and risk assessment, Verisk developed a suite of solutions that apply advanced analytics and automation to existing and emerging data sources.
The solutions include LightSpeed Auto, which combines extensive data resources and groundbreaking predictive analytics from Verisk to deliver superior results for both auto insurers and their customers.
Also included in Verisk’s suite of solutions is the Verisk Data Exchange, which is one of the largest telematics data exchanges of its kind and contains more than 290 billion miles of driving data from consenting drivers of connected cars.
The Verisk Data Exchange empowers auto insurers to access the driving behavior insights they need to provide telematics pricing and discounts instantly during the quoting process through the leading DrivingDNA product family.
With advanced analytics and data refinement capabilities, insurers who use Verisk’s solutions can gain turnkey access to automotive telemetry that supports the development and growth of usage-based insurance.
The company said numerous auto insurers have already connected to the Verisk Data Exchange, including four of the 10 largest U.S. carriers.
To learn more about Verisk’s personal auto solutions, visit verisk.com/personalauto.
TransUnion is making another significant investment in helping finance companies and other clients keep fraud out of their book of business.
On Monday, TransUnion said it has signed a definitive agreement to acquire Neustar, an identity resolution company with leading solutions in marketing, fraud and communications, from a private investment group led by Golden Gate Capital and with minority participation by GIC.
According to a news release, the acquisition is for $3.1 billion in cash and is expected to close during the fourth quarter. It expands TransUnion’s digital identity capabilities through the addition of Neustar’s distinctive data and analytics, enabling consumers and businesses to transact online with greater confidence.
“The credit information and analytics that TransUnion provides make trust possible between consumers and businesses. As digital commerce continues to grow globally, TransUnion’s powerful digital identity assets, enhanced by Neustar’s distinctive data and digital resolution capabilities, will enable safer and more personalized online experiences for consumers and businesses,” TransUnion president and chief executive officer Chris Cartwright said in the news release.
The company highlighted that the acquisition advances TransUnion’s strategy to diversify from its core credit solutions with complementary digital marketing and fraud mitigation capabilities.
Executives added that Neustar’s OneID platform will help to unify the digital identity capability TransUnion has built and acquired in recent years including the TLO data assets and fusion platform, the iovation device reputation network and the digital marketing capabilities of Tru Optik, among others.
“TransUnion and Neustar share a similar strategic vision, culture and focus on building innovative identity-based solutions which enable trusted connections between companies and people,” said Charlie Gottdiener, president and CEO of Neustar. “The two companies’ complementary businesses, products and relationships will offer benefits for our combined customers, employees and other stakeholders across a diverse set of markets.”
TransUnion mentioned other key benefits of the proposed transaction, including:
• The addition of Neustar’s talent, data and products will enhance TransUnion’s position as a global information and insights company providing diverse, high-growth credit and non-credit solutions at scale.
• Neustar’s OneID identity resolution platform will increase the speed and sophistication of TransUnion’s identity-based solutions, strengthening TransUnion’s offers across industry verticals in the U.S., as well as global markets in the longer term.
• The combined company will be well positioned to solve customer and consumer challenges related to identity
• Neustar’s broad customer base advances TransUnion's diversification into new markets and verticals and presents significant opportunities for cross-selling and innovation.
Executives pointed out that Neustar’s security business, which is excluded from the transaction, will become a Golden Gate Capital and GIC portfolio company following close.
“Over the last four years, Neustar has meaningfully scaled its core portfolio of solutions, completed strategic investments in its growth platforms and technology, and enhanced its winning culture,” Golden Gate Capital managing director Rishi Chandna said. “We are proud to have partnered with management and the talented Neustar team to execute this successful transformation into a leading provider of identity-driven solutions which leading brands rely on every day to connect with their prospects and customers.
“We have great respect for TransUnion and are confident they are the right partner for Neustar in its next chapter,” Chandna added.
J.P. Morgan recognizes that modern vehicles do more than travel highways, taking their owners from place to place. These vehicles also can be the conduit to a variety of financial transactions, too.
On Wednesday, J.P. Morgan’s corporate and investment bank announced that it has entered into a strategic deal with Volkswagen Financial Services, with plans to acquire a controlling interest of close to 75% in the OEM’s payments platform, operated by Volkswagen Payments.
The bank highlighted that the deal, which is subject to regulatory approvals, will expand the J.P. Morgan’s digital payment capabilities and see the platform extended and accessible to the broader auto industry.
According to a news release, the alliance between the two firms will seek to develop the platform for new markets and industries outside of the automotive sector where mobility-focused payments will become central.
The deal is expected to close in the first half of 2022, at which point the two companies will build out their joint operating model — including branding of the initiative — with a strategy to open to other companies across the auto industry.
Executives indicated Volkswagen Financial Services will remain a shareholder and the platform will continue to facilitate payments across the Volkswagen network in support of all Volkswagen Group brands globally.
Founded in 2017 in Luxembourg, Volkswagen Payments operates a leading payments platform designed for the auto industry. Operating in 32 markets around the world, the business offers a range of digital payments services across the auto ecosystem, including:
— Initial purchase and leasing
— In-vehicle payments
— Fueling and electric vehicle charging
— Parking and subscription-based services such as insurance and in-vehicle entertainment.
The companies pointed out the payments solution focuses on digitally connecting the auto ecosystem and improving the payments experience for consumers, distributors and suppliers alike.
J.P. Morgan described the platform as a “natural fit” for its wholesale payments business, which combines corporate treasury services, trade finance, card and merchant services capabilities. The business also looks to deliver an integrated payments experience to end users across the economy.
Executives mentioned that Volkswagen Payments will continue to be based in Luxembourg, which is one of J.P. Morgan’s key European locations and where it has a proud history of supporting clients for more than 45 years.
J.P. Morgan projects that in-car payments could reach $4 billion this year. J.P. Morgan also expects that the connected vehicle, the digital payments experience and customized payment services, will all become core features of business models in the future.
“We plan to build on Volkswagen Financial Services’ innovative groundwork on the existing platform and apply the global scale of our payments expertise to meet evolving customer expectations in the auto space and beyond,” said Shahrokh Moinian, head of wholesale payments at J.P. Morgan
Max Neukirchen, global head of merchant services at J.P. Morgan, added these thoughts in the news release: “Auto payments encapsulate many of the characteristics of the wallet of the future more generally. Partnering with a leader in the field gives us a great opportunity to be at the heart of that.”
Christian Dahlheim, head of Volkswagen Group Sales, also discussed why the OEM made this move with J.P. Morgan.
“With its many years of banking experience and global market presence, J.P. Morgan is the ideal partner for Volkswagen Payments to implement the requirements of the Volkswagen Group’s brands for customized automotive payment solutions worldwide,” Dahlheim said in the news release.
And Volkswagen Financial Services chief information officer Mario Daberkow added, “We are proud of the successful setup and operation of Volkswagen Payments and, as a strong shareholder, we will ensure that it continues to support the Volkswagen Group and its brands with tailor-made and innovative solutions and services in the field of digital payments.”
The previously announced all-stock merger of two companies describing themselves as equals came to fruition this week.
On Monday, RateGenius Loan Services and AUTOPAY Direct announced that the companies have successfully completed their merger transaction. Upon closing, the two companies became operating units of The Savings Group, creating what executives believe is the most diversified consumer marketplace for automotive finance and refinance.
The merger was unanimously approved by each company’s board of directors, according to a news release.
The announcement also indicated The Savings Group will be led by co-chief executive officers and AUTOPAY co-founders Jeff Hutcheson and Seth Meyer, while the previous RateGenius CEO, Christopher Speltz, will take over as executive chairman and chairman of the board.
The Savings Group said it will provide even more choices to consumers with what it believes to be the market’s best rates, savings and vehicle protection plans, while also delivering volume growth to its network of finance companies and business partners.
“This merger represents years of growth on behalf of both companies, and now is the perfect time to make this move as consumers have increasingly embraced digital lending and as auto finance activity has shifted outside the dealership,” Speltz said in the news release. “We’re very excited to complete the merger agreement with AUTOPAY and together lead the way to offer the best rates and products to consumers.”
“We’re incredibly fortunate to merge with a company in RateGenius that shares our passion for helping consumers save money on their auto loans,” Hutcheson added. “We’re excited for this new venture that will provide even more options for consumers to secure the best rate and terms possible.”
And Meyer went on to say, “In The Savings Group, we’re positioned to become the market leader in auto finance and refinance, combining resources from two of the industry’s leading platforms under one company with expanded offerings.
“More options increase a consumer’s confidence in making the right decision when picking the best loan terms. There are expanded options for everyone and that is what matters most,” Meyer said.
The executives noted The Savings Group will now employ more than 550 team members split between their existing office hubs in Austin, Texas, and Denver. With an expanded network of more than 180 finance companies representing all 50 states, The Savings Group said the combined company will facilitate more than $2 billion in automobile financing transactions in 2021.
Portico Capital Advisors served as the exclusive financial advisor to AUTOPAY throughout the transaction. AUTOPAY is a portfolio company of FM Capital, while RateGenius is a portfolio company of Tritium Partners.
In a separate email message, truPayments chief executive officer Tarry Shebesta said: “Today starts the next chapter of my 32-year career in the online marketing, shopping and digital retailing space.”
The reason for Shebesta’s declaration arrived through a news release distributed on Monday. PureCars announced its acquisition of truPayments in a move meant to solidify its commitment further to helping dealers thrive by expanding its marketing technology and services suite to include personalized payment shopping.
PureCars’ tools are designed to optimize media buys to achieve lower ad costs per unit sold and per RO, resulting in increased profitability for dealerships. Meanwhile, truPayments’ solutions are geared to convert shoppers earlier in the buying process, further reducing advertising costs for dealerships, while providing an improved buying experience for their customers.
PureCars is backed by Diversis Capital Partners and Stage 1 Ventures.
The company highlighted the acquisition of truPayments will add even more payment data to PureCars’ data warehouse, enabling dealers to serve payment-relevant ads to shoppers, and convert those shoppers to buyers, earlier in their buying journey, further reducing dealer ad costs per unit sold.
PureCars said dealers will be able to more quickly and efficiently match in-market shoppers with their inventory at exactly the right payment.
Furthermore, while the industry grapples with inventory shortages, PureCars went on to mention that pairing vehicle acquisition campaigns with an accurate trade tool that quickly shows consumers the equity in their trade will give dealers a more profitable, less competitive vehicle acquisition option to auctions, which can eat into margins with transport and other associated fees.
“Automotive shoppers today expect more from dealerships at every stage in the buying cycle,” PureCars CEO Jeremy Anspach said in the news release. “In order to give dealerships a leg up on new disruptive competitors that bypass the dealership, but offer much more limited services, dealerships need innovators like PureCars to help them deliver smoother, more intuitive experiences to shoppers as their expectations continue to rapidly evolve.
“The unification of PureCars’ martech and truPayments’ fintech represents an organic evolution for both companies that will result in even greater cost efficiencies for our dealers and partners, as well as superior shopping experiences for the customers they serve,” Anspach continued.
And Shebesta added these perspectives in the news release.
“The opportunity to directly integrate martech with shopping personalization and digital retailing is groundbreaking,” Shebesta said. “The synthesis of the underlying data and technology sets the stage for us to have a significant positive impact on the car buying process for consumers, as well as the advertising and retailing experience for dealerships.”
One of this year’s Emerging 8 honorees now has new ownership.
On Wednesday, J.D. Power announced it has acquired Superior Integrated Solutions/Darwin Automotive, a leading provider of F&I software used by dealerships.
The company highlighted in a news release that the acquisition enhances the value J.D. Power can provide with its data, analytics, and software components to auto dealers, original equipment manufacturers, third parties and consumers as the industry continues to employ new technologies to improve the consumer experience.
The announcement also indicated Superior Integrated Solutions/Darwin Automotive senior leadership and its 88 employees will join J.D. Power and will form the base of a new dealership technologies division.
“We are focused on maximizing the value of our extensive data and analytics assets by connecting the key components of the auto industry supply chain from OEMs to dealers to consumers and empowering each link in that chain with critical intelligence, streamlined workflows and user-friendly software,” J.D. Power president and chief executive officer Dave Habiger said in the news.
“By partnering with Phillip Battista and his amazing team at Superior Integrated Solutions/Darwin Automotive, we will be well-positioned to help auto dealers maximize profits while delivering a world-class customer experience,” Habiger continued.
J.D. Power said Superior Integrated Solutions has been a leader in F&I software and digital retailing with more than 7,700 dealers using its technology.
Its Darwin Automotive platform is an F&I menu software application, supporting both showroom and digital sales with highly personalized, customer-focused tools to select vehicle financing and protection options. The technology leverages data and predictive analytics to customize customer offers based on a range of criteria including specific vehicle information, overall deal structure and the situation for each individual customer, creating the optimal F&I package.
Widely adopted by the largest dealer groups in the United States, J.D. Power pointed out the Darwin Automotive platform is used in one-third of all new-vehicle transactions today.
“The auto industry is undergoing a historic transformation that will put powerful customer analytics and highly customized, multi-channel solutions at the center of the vehicle purchase experience,” said Battista, who is chief executive officer of Superior Integrated Solutions/Darwin Automotive and will become president of dealership technologies at J.D. Power.
“J.D. Power is an iconic brand that drives consumer confidence worldwide and the combination of the J.D. Power brand and our technology will be a game-changer for the industry affecting everyone from online consumers to dealers to OEMs to insurers,” Battista continued. “We are thrilled to be working with J.D. Power and look forward to even bigger and better innovations to come.”
Portico Capital Securities served as exclusive financial advisor to Superior Integrated Solutions/Darwin Automotive with respect to this transaction.
Acquisition closed and top executive shifted into a new role. Those are the two main developments to arrive via news releases from IDS and White Clarke Group on Tuesday and Wednesday.
First, IDS — a provider of mission-critical enterprise solutions for secured finance — announced it has successfully completed the acquisition of White Clarke Group, a leading provider of retail, fleet, wholesale and asset finance software solutions for the automotive and equipment finance markets.
Then, IDS appointed Brendan Gleeson, who had served as group chief executive officer of White Clarke Group since 2013, to be the chief strategy officer of the newly combined operations.
IDS highlighted that its combination of service providers creates a multi-asset class secured finance technology “powerhouse,” supporting banks, independents, OEM captives and independent finance firms globally.
“Bringing our two companies together as one accelerates our ability to innovate at scale and better serve our combined global customer base with a comprehensive portfolio of market-leading secured finance solutions,” IDS chief executive officer David Hamilton said in the first news release. “Together, we provide the industry’s most talented and experienced team of secured finance experts to ensure our customers’ success globally.”
Hamilton pointed out the fast-paced world of technology — from smart manufacturing to the Internet of Things (IoT) to sustainable energy — is bringing about emerging technologies, new funding models and exciting new economic growth opportunities.
“These opportunities will increasingly require access to capital from secured finance firms,” Hamilton said. “Drawing from our combined strengths, IDS is now more agile and better positioned to capitalize on these market trends and innovate at the pace of change as we support the accelerated growth of digital transformation, service-centric business models and mobility in our industry.”
Expanding its comprehensive portfolio of products globally across multiple market segments, IDS now offers secured finance organizations the following solutions:
— Automotive finance (retail, fleet and wholesale): The Customer and Acquisition & Lifecycle Management System (CALMS) includes point-of-sale, contract origination, servicing, and floor-planning capabilities serving eight of the top 10 manufacturers representing 25 brands.
— Equipment and asset finance: An end-to-end platform that can streamline the leasing and loan origination and portfolio management process, running more than $350 billion of net asset value on its full lifecycle solution.
— Working capital – (Asset-based Lending and Factoring) – A comprehensive solution provides the ability to manage flexible working capital finance offerings with real-time credit monitoring and availability. This solution manages ~$50bn in factoring volume annually.
IDS acquired White Clarke Group from Five Arrows Principal Investments, which will remain a shareholder in the combined company.
“As private companies, the financial terms of the deal were not disclosed,” IDS said.
Now with the acquisition completed, IDS asked Gleeson to begin his tenue in this newly created executive position on Wednesday.
IDS said Gleeson will play a strategic role in driving the company’s overall innovation focus. This role will include identifying industry and technology trends and translating them into strategic insights to expand value across the comprehensive solution portfolio.
“Brendan’s innovation leadership and strategic direction at White Clarke Group led to the development of a world-class portfolio of solutions to meet the ever-changing needs of the automotive, wholesale and equipment finance marketplace,” Hamilton said in the other news release.
“As part of the IDS executive team, he will continue to drive innovation by identifying mid- and long-term strategic needs of the broader secured finance industry and capitalize on technology trends with the goal of bringing to market forward-leaning solutions and innovative products for our customers,” Hamilton continued.
IDS said Gleeson brings nearly 30 years of industry experience with an entrepreneurial spirit and successful track record and vision in developing and executing global strategies, international expansions and technology product innovation.
“The technology landscape is rapidly evolving and requires dedicated focus to be able to innovate at the speed and scale our customers demand,” Gleeson said. “Emerging technologies like artificial intelligence and machine learning coupled with changes in consumer behavior such as consumption-based subscriptions are reshaping market dynamics and creating new opportunities in secured finance.
“As these digital trends accelerate, financing firms will look to IDS to deliver innovative products to navigate the new normal with confidence,” he went on to say.
In what the companies are calling an all-stock merger of equals, RateGenius Loan Services and AUTOPAY Direct announced on Tuesday that they have entered into an agreement to combine.
According to a news release, the transaction, which is expected to close within the next 60 days, has been unanimously approved by the board of directors of both companies.
As a result of the merger, RateGenius and AUTOPAY highlighted the combined company will provide even more choices for consumers, while channel partners and finance companies will benefit from aggregated supply and demand via APIs and embeddable co-branded and white-labeled user experiences.
Both companies said they have enjoyed years of high growth as consumers increasingly embrace digital financing and as auto finance activity continues to shift outside the dealership.
“The almost $1.4 trillion auto debt market is now the third-largest consumer loan category leaving consumers in need of a better option,” RateGenius chief executive officer Christopher Speltz said in the news release. “Over the last several years, more savvy consumers are taking advantage of online, digital-first lending processes, low-interest rates, strong vehicle collateral values and lenders that have excess deposits and thus a strong desire to grow their auto refinance asset category.
“This merger will strongly drive these trends and expand and enhance consumer loan savings,” Speltz continued.
The companies currently employ more than 500 team members in their Austin, Texas, and Denver hubs. Working with more than 180 finance companies in all 50 states, the companies said they will facilitate more than $2 billion in automobile financing this year.
“We will stand and lead at the intersection of several important banking trends including growing consumer awareness of vehicle refinancing, the markets’ increasing acceptance of digital lending and partnerships with fintech companies,” AUTOPAY co-CEO Seth Meyer said.
“The auto finance paradigm is shifting dramatically. It is our intent to provide the highest quality operations that consumers and lenders can rely on when seeking to execute successful auto financings outside of the dealership,” AUTOPAY co-CEO Jeff Hutcheson added.
Portico Capital served as the exclusive financial advisor to AUTOPAY, which is a portfolio company of FM Capital.
RateGenius is a portfolio company of Tritium Partners.
White Clarke Group is set to have its second owner in five years.
According to a news release distributed on Wednesday, IDS, a provider in enterprise mission-critical solutions for secured finance, has agreed to acquire White Clarke Group, a provider of retail, fleet, wholesale and asset finance solutions for the automotive and equipment finance markets.
Executives highlighted the two companies combine to create a multi-asset class secured finance technology powerhouse supporting banks, independents, OEM captives and specialty finance firms globally.
The announcement indicated IDS is acquiring White Clarke Group from Five Arrows Principal Investments, which originally invested in the business in 2016 and will remain a shareholder in the combined company.
Executives added transaction is expected to close before the end of the second quarter. However, financial terms of the deal have not been disclosed.
Together, the combined company will serve more than 300 customers across North America, Europe and Asia Pacific and will be co-headquartered in Minneapolis and Milton Keynes, United Kingdom.
“Global business has entered a new long-term investment cycle driven by the rapid evolution of technology,” IDS chief executive officer David Hamilton said in the news release. “Smart factories, connected-assets (IoT), green-energy, and many other technology innovations will bring about exciting new economic growth opportunities which will require access to capital from secured finance firms.
“With a comprehensive and flexible technology foundation, these finance providers will be able to support new funding models accelerating the move to digital, servitization and mobility,” Hamilton continued. “Supporting this fast-changing market need is the motivation for bringing our two great companies together creating an unmatched range of secured finance solutions and the ability to support customers globally.”
IDS and White Clarke Group together provide a comprehensive portfolio of products across multiple market segments including:
• Automotive finance (retail, fleet and wholesale): CALMS is a full lifecycle system including point-of-sale, contract origination, servicing and floorplanning capabilities serving eight of the top 10 auto manufacturers representing 25 brands.
• Equipment / asset finance: End-to-end platform for leasing and contract origination and portfolio management with more than $350 billion of net asset value running on the solution.
• Working capital (Asset-based lending and factoring): A comprehensive solution providing the ability to manage flexible working capital finance offerings with real-time credit monitoring and availability, managing $50 billion in factoring volume annually.
“Our industry is being disrupted by a global shift in consumption,” White Clarke Group CEO Brendan Gleeson said. “Consumers and businesses want utility and outcomes, not ownership. This has created an opportunity for financing firms to tap into emerging technologies including digital and AI to create new business models like subscription and car-sharing.
“As these trends accelerate, these firms will need the support of a global technology vendor that can deliver innovation at scale. Combining our companies provides the ability to innovate at the pace of change while delivering exceptional value to our combined customer base,” Gleeson continued.
The investment world is enthused about Wednesday’s development. A.J. Rohde is a senior partner at Thoma Bravo.
“We’re thrilled to support IDS in taking this transformational step,” Rohde said in the news release. “IDS and White Clarke Group have both invested in building industry-leading solutions which serve many of the world’s top financial services and automotive brands. The combination creates an exciting and truly unique proposition for the secured finance market, with a world-class team and global scale.”
Meanwhile, Five Arrows Principal Investments partner Vivek Kumar reflected on what the past five years have been liking working with White Clark Group.
“It has been our privilege to partner with White Clarke Group and help it transition from a founder-led UK focused business to a global player with a more recurring revenue model,” Kumar said.
“We are very excited about the combination of IDS and White Clarke Group, and look forward to helping in the creation of value in the combined company over the next few years,” Kumar went on to say.
White Clarke Group was established in 1992 and has built a strong track record in providing specialized technology and software solutions to the automotive and asset finance markets. The company’s CALMS (Customer Acquisition & Lifecycle Management System) product range supports the complete lifecycle of auto and asset finance, leasing, and installment contract origination from point-of-sale through credit approval, contract management and customer support.
The company has offices in the U.K., U.S., Canada, Australia, Austria, Germany, India and China.
Five Arrows was advised by Robert W. Baird & Co. and Shoosmiths LLP. IDS and Thoma Bravo were advised by Kirkland & Ellis LLP.
More details about the pending transaction can be found at www.idsgrp.com/whiteclarkegroup-acquisition.
