Along with introducing a new customer relationship management system (CRM) for dealers, Reynolds and Reynolds recently announced the acquisition of GoMoto, a provider in kiosk technology for the service lane that can offer streamlined, self-led customer check-in and check-out.
Robert Burnett, senior vice president for business development and acquisitions at Reynolds, explained why the provider of automotive dealership software, documents and professional services made this move.
“When I speak with dealers, I consistently hear them note the importance of the service department in their overall business, but also the need to improve the efficiency and effectiveness of service operations and improve the way consumers experience the Service department,” Burnett said in a news release.
“GoMoto is a proven retailing tool that will enable dealerships to increase efficiencies and better serve customers the way the customer chooses to be served,” he continued.
Terms of the deal were not disclosed, according to a news release.
As automotive retailing continues its digital transformation, Reynolds reiterated the value of its tools such as the docuPAD system, Reynolds eWorkflow, e-contracting and Advanced Service. With the addition of GoMoto, Reynolds has expanded those capabilities with a well-established technology and product team.
Reynolds highlighted the GoMoto benefits include:
— Streamlines the service check-in process — in as little as two minutes or less — and collects the necessary information with 95% accuracy
— Boosts higher throughput in service
— Displays service recommendations tailored to the customer’s vehicle and helps improve the upsell rate at the dealership by as much as 20%
— Displays other upsell opportunities, including trade-in appraisals, which have increased vehicle trade-in appraisal rate by as much as 11%
— Provides a consumer-friendly reminder for recall alerts
“The GoMoto platform and software tools already have a substantial footprint among automotive retailers,” GoMoto chief executive officer Todd Marcelle said. “As consumers, we’re used to self-service technology across a lot of different retail environments. Why wouldn’t we expect the same from automotive retailers? Combining our business as part of Reynolds will provide immediate growth opportunities and is really exciting for all of us at GoMoto.”
Today, GoMoto software can fit seamlessly with major DMS providers. Burnett indicated that practice won’t change with the acquisition.
“This acquisition is one more example of Reynolds’ ongoing commitment to support automotive retailers in operating more efficiently and profitably, while, at the same time, improving the overall car-buying and servicing experience for a dealership’s customers,” Burnett concluded.
Details about Reynolds’ new tool named FOCUS
In other company news, Reynolds also introduced a new customer relationship management system (CRM) for automotive retailers named FOCUS.
The company explained FOCUS is a dealership-wide CRM system enhanced with mobile functionality and built to deliver the efficiency, convenience, and accessibility that dealership personnel rank as top priorities.
Designed and built as part of Reynolds Retail Management System, FOCUS helps ensure dealers are maintaining one database of customer information to manage all aspects of the dealership. As a result, FOCUS can provide a full picture of the customer life cycle across all dealership departments — from sales to service — without duplicate entries or keystrokes.
“FOCUS represents a complete reimagining of what a CRM system can and should be,” said Jon Strawsburg, vice president of product planning for Reynolds and Reynolds. “CRM tools have been around for years and generally have gotten more sophisticated and complex.
“But that added complexity doesn’t always make it more effective to get work done. We changed that,” Strawburg continued. “FOCUS is built to make managing the customer relationship easy and intuitive, and to help in deciding what ought to be done next, not simply providing a list of what needs to be done some time.”
The new CRM system is built on the unique roles of users throughout the dealership. Reynolds broke down what various store departments can do with FOCUS, including:
— Managers can more effectively train, lead, and manage their sales force with automated process tracking.
— Sales professionals can more efficiently manage their sales process as it happens, closing more deals and avoiding the dreaded, “I’ll be back.”
— BDC and marketing managers can more proficiently handle leads, appointments, and customer communications from a single tool and virtually eliminate manual entry.
“It’s become increasingly apparent to us that traditional CRMs haven’t been cutting it for the challenges dealers face today — and more importantly, will face tomorrow,” Strawsburg said. “We incorporated extensive feedback from dealers who tested and used the new product — in their stores, in real time, for real work.”
“What we delivered is more than a CRM,” he added. “FOCUS redefines traditional functionality to achieve the perfect balance of employee empowerment, management control and dealership-wide success.”
To learn more about how FOCUS can help revamp your dealership, visit reyrey.com/FOCUS.
LexisNexis Risk Solutions closed January by announcing it finalized the acquisition of ID Analytics, the San Diego-based provider of fraud and credit risk solutions.
Previously, ID Analytics was a NortonLifeLock company.
LexisNexis Risk Solutions said the strategic acquisition of data and analytics pioneer ID Analytics highlights the company’s commitment to expanding its innovation and expertise in verifying and authenticating consumer identities.
ID Analytics is now part of the business services group of LexisNexis Risk Solutions.
Founded in 2002, ID Analytics provides consumer credit risk and fraud analytics solutions to the telecommunications and financial services segments in the United States. These solutions can provide insight into consumer behavior through proprietary data and analytics to enable more predictive credit decisions across the customer lifecycle.
ID Analytics solutions also utilize traditional and alternative data within its ID Network, one of the largest networks of cross-industry consumer behavioral data in the U.S., to help organizations better identify applicant fraud risk.
“The combined capabilities from LexisNexis Risk Solutions and ID Analytics will provide our customers with a more accurate and comprehensive approach to fraud and identity and credit risk management across all forms of commerce,” said Rick Trainor, who is chief executive officer business services at LexisNexis Risk Solutions. “The ID Network in particular is a powerful consortium platform that will enhance our existing digital and physical identity verification and authentication services.
“We look forward to delivering stronger identity and alternative credit risk solutions to our customers and continuing with our on-going innovation with the combined strength of our data and analytics services,” Trainor continued.
“LexisNexis Risk Solutions is focused on making it easier for our customers to do business,” he went on to say. “We will continue to execute against this strategy by purposefully enhancing our solutions to help our customers manage risk and make better-informed decisions. The addition of new machine learning and data modeling capabilities from ID Analytics enables us to more rapidly achieve this goal to the benefit of our customers.”
ID Analytics CEO added Matt McAluney added, “For nearly two decades ID Analytics has served at the forefront of fraud and credit risk management, helping our customers thrive and grow while balancing risk. It is exciting to join forces with an organization whose complementary solutions align with our vision of helping customers better detect fraud and manage risk.”
Truist Financial Corp. is officially ready for business, according to an announcement made on Monday morning.
Executives said the completion of the merger involving BB&T Corp. and SunTrust Banks became effective on Friday. They pointed out Truist now is the sixth-largest U.S. commercial bank, serving approximately 10 million consumer households and a full range of business clients, with leading market share in many of the most attractive, high-growth markets in the country.
“This is a historic moment for Truist — a financial services organization created from two companies with shared values and a deep commitment to building a better future for our clients and communities,” Truist chairman and chief executive officer Kelly King said in the news release.
“The completion of this merger of equals is a tremendous achievement and a testament to the thousands of Truist teammates who have diligently worked to ensure its timely conclusion,” King continued.
For now, the company said its clients will continue to be served through their respective BB&T or SunTrust branches, websites, mobile apps, financial advisors and relationship managers. Clients can now use BB&T and SunTrust ATMs to make withdrawals without incurring out-of-network fees.
“With Truist, we’re creating a new company with a bold, transformative vision to increase investment in innovative technology and create a distinctive teammate and client experience,” Truist president and chief operating officer Bill Rogers said. “We have much work ahead of us, but we’re well-positioned to create meaningful change for the clients we serve and the communities where we live and work.”
The merger was first announced on Feb. 7 and final regulatory approvals were received on Nov. 19.
The company indicated the transition to the full Truist experience will occur as systems are integrated over the next two years.
Truist noted there will be no merger-related changes to account numbers or routing numbers for checking, savings and money market accounts for the vast majority of clients. As a result, most clients won’t need to order new checks or make changes to direct deposits, automatic drafts or wire instructions related to these accounts.
Clients can find the latest information at Truist.com.
The company also mentioned Truist teammates will be offered a total compensation and benefits program designed to attract and retain the best talent in the industry. This includes time off programs to ensure maximum flexibility in planning life events, company-subsidized health care, financial wellness programs and the unique combination of a 401(k) match program and pension plan offered to most teammates.
Moody’s Corp. boosted its analytical horsepower last week with an outside acquisition.
Moody’s announced that it has acquired RiskFirst, a leading fintech company providing risk analytics solutions for the asset management and pension fund communities. A news release indicated the acquisition positions Moody’s Analytics to extend its range of risk solutions to the institutional buy-side.
The terms of the transaction were not disclosed. Moody’s did say the transaction was funded with offshore cash on hand.
RiskFirst’s award-winning PFaroe platform is a leading risk solution for U.S. and U.K. defined benefit pension markets, supporting more than 3,000 plans and more than $1.4 trillion in assets. RiskFirst also offers innovative solutions for the institutional investment market, including endowments, foundations and asset managers.
“RiskFirst sits at the heart of the buy-side and asset owner ecosystem and is known for its specialized expertise and high-quality products,” Moody’s Analytics president Mark Almeida said.
“Adding RiskFirst’s platform to Moody’s Analytics’ product offering creates significant opportunities for growth and demonstrates our commitment to extend our reach and capabilities to the buy-side and asset owner community.”
Moody’s acknowledged asset owners are increasingly seeking more sophisticated risk solutions, supported by advanced technology and analytics, to address growing financial management, funding and capital management challenges.
The company insisted this acquisition creates opportunities to extend the analytical capabilities of RiskFirst’s platform and to develop new solutions to meet evolving customer needs.
“Combining Moody’s Analytics scale, reach and capabilities with RiskFirst’s leading solutions and extensive customer base creates a strong value proposition for buy-side institutions and asset owners,” RiskFirst chief executive officer Matthew Seymour said.
“This deal will enhance our capabilities while building on what has made RiskFirst successful: a sophisticated, technically excellent product combined with superior service and support,” Seymour added.
Moody’s expects the acquisition of RiskFirst to be accretive to earnings per share on a GAAP basis in 2022. On an adjusted EPS basis, which excludes purchase price amortization, the transaction is expected to be accretive in 2021.
RiskFirst generated £16.5 million of revenue in 2018.
Morningstar certainly appears to believe that DBRS is a good investment.
Morningstar, a leading provider of independent investment research, announced on Wednesday it has entered into a definitive agreement to acquire DBRS, the world’s fourth-largest credit ratings agency.
A news release indicated the transaction has a purchase price of $669 million.
Morningstar said it intends to fund the transaction with a mix of cash and debt, which will include the placement of a new credit facility at closing. The transaction is expected to be accretive to net income per share in the first fiscal year after completion with an estimated closing in the third quarter of 2019, subject to regulatory approval and customary closing conditions.
Officials highlighted the combination of DBRS with Morningstar Credit Ratings’ U.S. business will expand global asset class coverage and provide an enhanced platform for providing investors with leading fixed-income analysis and research.
“The chance to empower investors with the independent research and opinions they need across a multitude of securities first drove our decision to enter the credit ratings business,” Morningstar chief executive officer Kunal Kapoor said. “DBRS and Morningstar share research-centric cultures committed to rigor and independence. Together, we believe we can elevate the industry with the world’s first fintech ratings agency backed by state-of-the-art models, modern technology, and expert research teams that issuers and investors can count on to deliver transparent and independent ratings.”
For more than 40 years, DBRS has built a strong market presence across Europe, the U.S., and especially Canada. As the world’s fourth-largest credit ratings agency, the company rates more than 2,400 issuer families and nearly 50,000 securities worldwide. The Carlyle Group and Warburg Pincus led the acquisition of DBRS in 2014.
DBRS reported $167 million in revenue for the fiscal year ended Nov. 30. Officials highlighted the business generates strong cash flow with operating margins that are consistent with Morningstar’s overall business.
On a preliminary pro forma basis, if Morningstar owned DBRS as of Dec. 31, the company computed revenue from credit ratings would have represented approximately 17% of Morningstar’s total revenue.
“DBRS’s more than 40 years of experience and success coupled with Morningstar’s proven capabilities will offer an even stronger global alternative to larger ratings agencies,” DBRS chief executive officer Stephen Joynt said. “Both DBRS and Morningstar are driven by similar core values that aim to bring more clarity, diversity, transparency, and responsiveness to the ratings process, which makes Morningstar a perfect fit for us.”
Building on the strength of its equity research, Morningstar first began publishing non-nationally recognized statistical rating organization (NRSRO) credit ratings on public companies in 2009 and in 2010 acquired Realpoint, a NRSRO with a specialty in commercial mortgage-backed securities (CMBS).
As a long-term key product area for Morningstar, its credit rating activities have since expanded to include residential mortgage-backed securities (RMBS), agency risk transfers, single-family rentals, asset-backed securities (ABS), collateralized loan obligations (CLOs), corporate securities, financial institutions and real estate investment trusts (REITs).
Morningstar Credit Ratings has also tripled its technology team, grown impressive talent, and moved to an all-new New York City headquarters at 4 World Trade Center.
DBRS has more than 500 people spread across seven locations and will continue to be led by its existing management team. Morningstar intends to name a leader of the combined businesses by the time the deal closes, and the companies plan to work together on decisions over time regarding the integration to ensure the combination is set up for long-term success.
Lazard Frères & Co. served as exclusive financial advisor to DBRS, and Wachtell, Lipton, Rosen & Katz served as legal counsel to DBRS. Winston & Strawn LLP served as legal counsel to Morningstar.
For the second time this quarter, two major participants in the financial services and payments spaces made moves to merge.
In January, Fiserv and First Data Corp., announced that their boards of directors unanimously approved a definitive merger agreement. Then last week, FIS and Worldpay also announced that they have entered into a definitive merger agreement to create a single firm where the parts generated more than $12 billion in revenue last year.
Officials highlighted this newest combination greatly expands FIS’ capabilities by enhancing its acquiring and payment offerings and significantly increases Worldpay’s distribution footprint, accelerating its entry into new geographies. Upon closing, officials believe the combined company will be positioned to offer best-in-class enterprise banking, payments, capital markets and global eCommerce capabilities empowering financial institutions and businesses worldwide.
At the closing, under the terms of the agreement, Worldpay shareholders will be entitled to receive 0.9287 FIS shares and $11.00 in cash for each share of Worldpay. Upon closing, FIS shareholders will own approximately 53 percent and Worldpay shareholders will own approximately 47 percent of the combined company. The combination of stock and cash values Worldpay at an enterprise value of approximately $43 billion, including the assumption of Worldpay debt, which FIS expects to refinance.
Upon closing, the combined company’s board of directors will consist of 12 members, seven of which will come from FIS’ board of directors and five of which will come from Worldpay’s board of directors. Gary Norcross will remain as FIS chairman of the board, president and chief executive officer. Charles Drucker, Worldpay’s current executive chairman and CEO, will serve as the executive vice chairman of the board.
The combined company will retain the name FIS and will be headquartered in Jacksonville, Fla.
The transaction is subject to receipt of required regulatory and shareholder approvals and other customary closing conditions and is expected to close in the second half of this year.
The company explained FIS and Worldpay have complementary solutions and services encompassing financial institution issuer services, network and merchant services including global leadership in eCommerce, as well as loyalty and fraud solutions benefiting consumers and businesses. They emphasized clients will benefit from the combined omni-channel payment and multi-currency capabilities, robust risk and fraud solutions and advanced data analytics.
Organizations of all types and sizes are looking for new ways to create more meaningful and frictionless experiences and grow their share of wallet through digital channels. The combination of FIS and Worldpay, two companies that are leading their respective markets in modernization investments, provides clients of both organizations access to a wider portfolio of digital assets to accelerate their revenue growth, streamline their operations and create a better engagement with their customers.
“Scale matters in our rapidly changing industry,” Norcross said. “Upon closing later this year, our two powerhouse organizations will combine forces to offer a customer-driven combination of scale, global presence and the industry’s broadest range of global financial solutions.
“As a combined organization, we will bring the most modern solutions targeted at the highest growth markets,” Norcross continued. “The long-term value we will create for clients and for shareholders will set the bar in our industry and will create a range of new career opportunities for our employees. I have never been more excited about the future of FIS.”
As an industry leading global merchant acquirer, Worldpay is one of the world’s top payment technology companies powering global omni-commerce and providing solutions for merchants, businesses and financial institutions on a global basis. It processes more than 40 billion transactions annually, supporting more than 300 payment types across more than 120 currencies.
“At Worldpay, our focus has always been on delivering more value to our clients and partners and making decisions that achieve our growth and performance objectives. Combining with FIS helps us accelerate the achievement of that, now benefitting from new scale and capabilities that will truly differentiate the company globally,” Drucker said.
“We are proud to become part of one of the financial services industry’s most respected and consistently performing companies, and I am excited about the new opportunities this brings both for the business and our colleagues worldwide,” Drucker went on to say.
Centerview Partners and Goldman Sachs & Co. acted as financial advisers to FIS. Willkie Farr & Gallagher LLP served as FIS’ legal adviser in the transaction.
Credit Suisse acted as financial adviser to Worldpay. Skadden, Arps, Slate, Meagher & Flom served as Worldpay’s legal adviser in the transaction.
