Spireon is likely familiar to both finance companies as well as fleet operators that use its services to track vehicles.
According to a news release, Spireon now is on a path to have new ownership by the end of the first quarter.
Solera Holdings announced that it has signed a definitive agreement to acquire Spireon from Greenbriar Equity Fund.
Subject to customary closing conditions and regulatory approval, the acquisition is expected to close in the first quarter, the companies said.
Solera said its strategic acquisition of Spireon will further strengthen its position as a leading provider of AI-powered software, services and data assets to four critical pillars of the vehicle lifecycle, including:
— Vehicle claims
— Vehicle repair
— Vehicle solutions
— Fleet solutions
Spireon said it currently serves more than 13,000 customers in the automotive, fleet, trailer and asset sectors with nearly 4 million connected devices that generate more than 900 billion discrete data points on its cloud native IoT platform each year.
Spireon looks to delivers powerful insights to help customers in these sectors track, manage and protect their most valuable assets.
“This acquisition is strategically aligned with our existing fleet and dealership growth strategies and will expand our customer base. It increases our total addressable market and adds significant opportunities for cross-selling and solution integration that benefit customers,” said Darko Dejanovic, chief executive officer of Solera, which completed the acquisitions of Omnitracs, DealerSocket and eDriving last summer.
“Bringing together Spireon’s IoT platform and Solera’s data assets creates a powerful, intelligent network that we believe improves safety, efficiency, and productivity across the vehicle lifecycle,” Dejanovic continued in the news release. “Every addition to our data assets allows us to enhance a continuous cycle of insights that solves the issues our customers face today while proactively addressing the challenges they will face tomorrow.”
Spireon chief executive officer Kevin Weiss added this perspective.
“I am extremely excited about the acquisition by Solera and the opportunities it will bring our customers and employees,” Weiss said. “Solera’s position as a growing, global leader can bring new avenues to expand Spireon’s IoT platform and solutions to address new customer challenges as well as global markets.”
Barclays is serving as the exclusive financial advisor to Solera, and Kirkland & Ellis is serving as legal counsel. Goldman Sachs and William Blair are serving as financial advisors to Spireon, with Hughes Hubbard & Reed serving as legal counsel.
“We are proud to have partnered with the world-class management team at Spireon,” said Michael Weiss, managing partner at Greenbriar Equity Group that managed the fund containing Spireon.
“By driving product innovation, commercial acceleration, and supply chain scalability, we’re pleased to have supported the company through a period of strong performance. Spireon is poised for breakout growth as part of Solera,” Michael Weiss went on to say.
The first business day of 2022 included an acquisition involving two firms focused on getting payments for their automotive clients as well as customers in other industries.
Repay Holdings Corp. (REPAY), a provider of vertically-integrated payment solutions, on Monday announced it has acquired Payix for up to $115 million.
REPAY said in a news release the acquisition was financed with cash on hand and available revolver capacity.
REPAY also announced the upsizing of its revolver capacity by $60 million, increasing its existing $125 million revolving credit facility to $185 million.
Founded in 2016 and based in Fort Worth, Texas, Payix is a leading omni-channel payment technology platform providing solutions that facilitate payments, data exchange, and communication to support customer service and collection efforts in repayment verticals. Payix’s software supports a wide range of payment options and modalities, and integrates into loan management systems (LMS) and dealer management systems (DMS) by providing a SaaS approach to collections technology.
REPAY said it paid $95 million at closing with up to $20 million becoming payable through an earnout, which is contingent on Payix’s performance in 2022.
The company indicated that Payix is expected to generate annual revenue of more than $15 million, with gross and adjusted EBITDA margins of approximately 65% and 40%, respectively.
REPAY highlighted five components of its strategic rationale for making this acquisition, including:
— Further enhances REPAY’s position in the large and growing automotive vertical, and accelerates expansion into the attractive buy now, pay later (BNPL) space
— Payix has generated strong topline growth and has highly predictable and recurring transaction revenue
— Complementary sales distribution model, driven by deep integrations with leading LMS and DMS platforms to accelerate new merchant acquisitions
— Payix’s platform serves more than 300,000 underlying borrowers
— Proprietary software platform, offering a wide range of omni-channel borrower payment options including via mobile app, web, SMS, agent-assisted, and interactive voice response (IVR)
“We are thrilled about the acquisition of Payix, a highly complementary business to REPAY,” REPAY chief executive officer John Morris said in the news release. “With its robust and highly flexible technology platform, Payix creates a uniquely positive experience and adds value for both the lender and borrower.
“Payix also has a strong pipeline and product roadmap, positioning it well for 2022 and beyond. We look forward to welcoming the Payix team into the REPAY family,” Morris went on to say.
Troutman Pepper served as legal advisor to REPAY. Capstone Partners served as exclusive financial advisor and Gunderson Dettmer served as legal advisor to Payix.
National Auto Care (NAC) made one more acquisition before closing out 2021.
Capping a string of moves throughout the year, NAC senior vice president of mergers and acquisitions Courtney Hoffman announced that the company — which provides F&I products, administration, consulting services, training and marketing support to independent agents, insurance companies, financial institutions, third-party administrators and credit unions — has added ADS Management Co.
ADS was founded in 1988 by Carl Farris and Steve Menninger. The agency provides dealership development and F&I products and services to dealerships throughout the Mid-Atlantic and Southeast.
According to a news release, Farris and David Dickens will continue to lead the operation from the ADS office in Suffolk, Va.
By combining with NAC, the company highlighted ADS’ growth will be further accelerated through NAC’s products, services, claims management and technology to its existing and new dealer relationships.
“Carl and his team have built one of the leading F&I support companies in the Mid-Atlantic and Southeast by focusing on bringing cutting-edge product offerings to the market, delivering outstanding customer service and developing long-term relationships that benefit its dealer partners,” Hoffman said in the news release.
Farris emphasized in the news release that the commitment of ADS will remain the same: to provide outstanding customer service as well as F&I products that help increase its dealer partners' bottom lines.
In addition, Farris pointed out that ADS also counts community involvement as a cornerstone of its business philosophy, supporting many local and national charitable organizations.
“I would like to thank our dedicated team for their hard work and our valued dealer customers for their continued support. All of us at ADS are excited to become part of NAC,” Farris said.
“Our shared philosophy of superior customer service and performance training for our dealers with the focus on local service was a great fit for our organization. Additionally, our team and dealers will get the benefit of a company that has a national footprint.”
The acquisition of ADS further accelerated NAC’s acquisitive growth strategy, which focuses on partnering with like-minded, high-growth F&I administrators and agents that value a team-oriented culture. The company has made 10 acquisitions during the past 18 months.
One of the closest observers of the auto securitization market now has new ownership after forming in the wake of the global financial crisis.
Kroll Bond Rating Agency (KBRA) announced on Tuesday that it has entered a deal with growth-oriented private equity firm Parthenon Capital Partners, which will acquire a majority stake in the company.
“When KBRA was founded, our mission was to provide the market with timely, valuable, and transparent ratings and research,” KBRA chief executive officer president and cofounder Jim Nadler said in a news release. “Over the past 11 years, KBRA has set the standard for engagement with investors, which has led to our leadership position across many markets.
“This investor engagement and outreach has also led to KBRA’s acceptance and reliance among issuers, policymakers, and key opinion leaders,” Nadler continued. “As we continue to expand both domestically and abroad, we are excited to partner with Parthenon to accelerate our future growth.”
KBRA has more than 400 employees across its five offices in the U.S. and Europe. The company has issued more than 51,000 ratings with nearly $3 trillion in rated issuance since its inception in 2010.
KBRA provides ratings and research across all sectors from its corporate, financial, and government (CFG) and structured finance units. The company also delivers data, information and tools to the market through innovative technology across its KBRA Analytics platform, including corporate and financial sector credit information and data and analytics.
Parthenon Capital is a leading growth-oriented private equity firm with offices in Boston, San Francisco and Austin, Texas. Parthenon utilizes niche industry expertise and a deep execution team to invest in growth companies in service and technology industries.
Two of the firm’s leaders explained why they made this move with KBRA
Parthenon Capital partner Zach Sadek said, “KBRA has quickly become a leading voice among the major global rating agencies. The market clearly relies on KBRA for holistic, transparent and thoughtful credit ratings and research.”
Parthenon Capital co-CEO Brian Golson added, “KBRA’s strong culture valuing integrity, ratings quality and customer service positions the firm for continued growth and success. We look forward to partnering with KBRA’s passionate team to support their next chapter.”
Parthenon Capital’s financial advisor was Newbold Partners LLC and its legal advisor was Kirkland & Ellis LLP. KBRA received legal advice from Gunderson Dettmer LLP and Shearman & Sterling LLP.
Earlier this week, DriveItAway announced its newest program for employers to enable vehicle ownership as both a means and incentive for potential new employees to get to work.
On Thursday, the mobility platform with its subscription-to-purchase technology for dealers made an even more dramatic announcement — new ownership.
Creative Learning Corp. and DriveItAway along with its existing shareholders executed an agreement and plan of share exchange under which Creative Learning would acquire all of the issued and outstanding common stock of DriveItAway by issuing one share of Series A convertible preferred stock for each outstanding share of DriveItAway common stock.
As a result of the share exchange, DriveItAway will become a wholly-owned subsidiary of Creative Learning upon the closing of the transaction, and shareholders of DriveItAway will become the beneficial owners of approximately 85% of the company’s common stock following the closing.
Upon the closing, DriveItAway, with its revolutionary subscription to purchase technology, will become the operating business of Creative Learning and will be led by the DriveItAway management team, which will focus exclusively on automotive mobility technologies and programs.
Closing of the share exchange is subject to a number of conditions, and is expected to occur in January, according to a news release.
“Our technology and platform is unique in the marketplace, as it enables those that are cash or credit challenged the ability to buy the vehicle of choice, from any car dealer chosen, in a transparent, easy and risk free subscription to ownership way, building credit and equity with every payment,” DriveItAway founder and chief executive officer John Possumato said in the news release. “This transaction will allow us to expand much more rapidly and help more people on a national basis.
“We believe the timing for this strategic initiative is perfect, as DriveItAway just recently launched a national ownership program for employers to help them relieve their labor shortage issues with its 'pay as you go' vehicle purchase program, which will help entry level employees get to work and enable employers to hire and incentivize new workers in an ESG mission-based way,” Possumato continued.
“DriveItAway is also soon to launch a pilot program enabling cash or credit challenged consumers the ability to ‘drive to own’ EV vehicles, as up until now entry level consumers have been left out or ignored in participating in current EV vehicle growth,” he went on to say.
First Investors Financial Services Group now officially is a captive finance company.
Stellantis announced late on Monday that it completed the acquisition of the company that previously specialized in subprime auto financing. As a result of the transaction first revealed on Sept. 1, First Investors now will be known as Stellantis Financial Services US Corp.
With conditions agreed upon and within the period indicated at signing, Stellantis highlighted in a news release that it now has the foundation to grow a full-service captive finance arm.
Stellantis Financial Services will provide U.S. customers, dealers and partners with a complete range of financing options in the near-to-medium term, including retail installment contracts, vehicle leases and floorplan financing.
“With the acquisition of First Investors, we will quickly develop a captive financial arm in the United States, offering a complete range of products, for the benefit of our customers, our dealers, our brands and our shareholders,” said Philippe De Rovira, Stellantis chief affiliates officer for sales finance, used cars, parts and service and retail network.
Stellantis chief financial officer Richard Palmer added, “Acquiring First Investors supports the growth plan for Stellantis’ business in the United States. This is a key strategic move to further extend our financial performance and create long-term value for Stellantis shareholders.”
According to the news release, the First Investors executive management team — with an average tenure of 18 years in the financial industry — is expected to remain in place.
“Enhancing customer experience is at the core of our mission,” said Tommy Moore Jr., who now will be chief executive officer of Stellantis Financial Services.
“Moving forward, we will leverage the strong commercial business in the United States to provide financing across the whole range of customers while looking to new emerging growth strategies, including mobility services, to expand our portfolio beyond the traditional vehicle sale,” continued Moore, who was honored in 2017 as the Subprime Auto Finance Executive of the Year.
This week, National Auto Care (NAC) senior vice president of mergers and acquisitions Courtney Hoffman announced the company’s 10th acquisition in the past 18 months.
Now part of the company’s F&I agency portfolio is a firm positioned to help NAC gain more market share not only with auto dealers but RV and powersports retailers, too, as the acquisition involved Oklahoma City-based Mojo Consulting.
NAC highlighted that Mojo is an agency founded in 2016 by Adam Hawthorne that provides F&I products and services to auto, RV and powersports dealers.
According to a news release, Hawthorne will continue to manage the day-to-day operations of Mojo’s office, along with Mojo executive Todd Wiebusch, expanding NAC’s presence in the Midwest and bolstering the sales experience at NAC, particularly in the RV space.
“We are excited about our partnership with Adam and Todd. A main focus of our acquisitions is on the people. The Mojo team will reinforce the already solid and robust team at NAC, and we are excited about our future together,” Hoffman said in the news release.
Hawthorne added, “I’m thrilled to be joining forces with NAC and look forward to continuing to deliver innovative products and training that best serve my clients.
“Partnering with NAC will not only benefit Mojo Consulting, but also provide industry-leading opportunities and immense support to the agency and clients,” he went on to say.
The presenting sponsor of Repo Con at Used Car Week made a major move a month before the industry gathers in Las Vegas.
Allied Solutions, one of the largest providers of insurance, financing, risk management and data enabled products to financial institutions, has acquired the majority interest in TrxNow, a technology solutions provider for roadside assistance and service logistics.
The company highlighted this acquisition will expand Allied’s distribution opportunities in Canada and support broader key initiatives across the enterprise.
“Allied continues to invest in strategic acquisitions that will complement our business and this latest deal is no exception. I am very excited about the acquisition of TrxNow and how it connects into our big picture vision for Allied Solutions,” Allied Solutions chief executive officer Pete Hilger said in a news release.
“Their products align very well with our MBP and Recovery Services and they have dominated the market with their cloud-based technology solutions and 24/7 trilingual contact center. TrxNow is also a perfect fit from a culture perspective and that is very important for long term success,” Hilger continued.
The company went on to mention the combination of Allied and TrxNow gives financial institutions across the United States and Canada access “to a powerful and unique suite of solutions powered by market leading technology and unparalleled service.”
Together, the companies said they will deliver a “truly connected and transparent customer experience” and will reach a broader audience with expanded markets and distribution.
“Our entire organization is proud to have earned the confidence of Pete Hilger, his leadership team and Allied Solutions to invest in us,” TrxNow president and CEO Anthony Royer said in the news release.
“I am confident that this will pave the way for increased growth and better opportunities for our existing clients. TrxNow is driven to ensure we over deliver and continue to be the best solution in the logistics and roadside assistance space,” Royer went on to say.
Allied Solutions might be referencing this acquisition when two of its executives give a Repo Con keynote presentation on Nov. 16 at the Red Rock Resort in Las Vegas. Senior vice president of risk and recovery Anne Holtzman and vice president of the national markets group Peter Krall will be leading a session titled, “5 Key Lender Takeaways for Product Refund Liability.”
For more details about this session as well as the workshops and panel discussions featuring more than 140 experts, executives and entrepreneurs, go to www.usedcarweek.biz.
Mergers and acquisitions continue to permeate the entire automotive industry. Tuesday’s public development involved the GPS and risk mitigation spaces.
Advantage GPS announced the acquisition of Michigan-based Asset Tracking Technology, a distributor of GPS tracking devices for finance companies, buy-here, pay-here dealerships, fleet tracking and personal tracking devices.
According to a news release, the company has been a distributor for Advantage GPS serving vehicle finance clients throughout the Midwest.
Advantage GPS president David Meyer highlighted that the acquisition enables the company to provide more direct, in-person service and support for Advantage clients in the Midwest.
“I’ve known Greg Schultz for decades,” Meyer said in the news release. “He’s been an early-on, invaluable distribution partner for Advantage, prominent industry leader and long-term friend and advisor.
“Our decision to acquire the business not only enables Advantage to strengthen its operations and presence in the Midwest, but it will also, provide more direct, in-person service and support for Advantage clients,” Meyer continued.
Over the next several months, Schultz and the Asset Tracking Technology team will stay on to assist the Advantage team in ensuring a seamless transition.
As part of Advantage’s continuing expansion plan, the company indicated the new acquisition of Asset Tracking Technology will improve its ability to deliver modern analytics and advanced, risk mitigation technology solutions to more subprime automotive finance companies nationwide today and well into the future.
Advantage acknowledged that Asset Tracking Technology is just the first transaction of many to follow as the company plans to accelerate its growth strategy and consolidate the GPS tracking and risk mitigation market.
“Asset Tracking Technology has serviced hundreds of clients over the past two decades,” said Schultz, who was the previous owner of Asset Tracking Technology. “Our focus has always been on quality products and service.
“Advantage is a brand that is synonymous with quality and performance, and shares a common business culture. That’s why this consolidation makes sense now — I know our clients will be in good hands,” Schultz said.
Advantage’s technology is designed to deliver vehicle location and a host of intelligence that can monitor and assess finance risks in real time.
The company’s interactive dashboard can give finance companies both high-level and vehicle-specific, granular oversight of their automotive finance portfolio. The system is designed to prioritize profit obstacles and proactively notify managers of high-risk situations that further help prevent losses and mitigates their severity if they occur.
Advantage’s solutions portfolio includes wired and wireless devices, VIN verify products, custom APIs, pay-as-you-go options and features that can allow users to manage all their devices regardless of provider.
Acquisitions in the F&I space are starting to intensify just like what’s been happening in the dealership sector for some time now.
On Tuesday, APCO Holdings — home to the EasyCare, GWC Warranty and MemberCare brands — announced that it recently acquired Strategic Diversified.
Through a news release, APCO highlighted this acquisition demonstrates its commitment to supporting dealers across the country as they respond to a changing market, delivering solutions that improve business performance and enabling a seamless consumer experience across all touchpoints.
Strategic Diversified offers a variety of solutions to help dealers in the Mid-Atlantic states develop their F&I strategy to increases revenue and profitability.
“We are excited to announce the acquisition of Strategic Diversified,” APCO Holdings chief executive officer Scot Eisenfelder said in the news release. “Strategic Diversified has been a great partner of APCO since 1998, so we are very well-acquainted with their people, their values, and the exceptional service they provide their customers.
“This acquisition strengthens our position in the Mid-Atlantic and adds a talented team that is recognized as F&I development leaders. We look forward to investing in accelerating growth in the region and putting the full force of APCO resources to support their success,” Eisenfelder continued.
Strategic Diversified CEO Rob Volatile added these perspectives in the news release
“As a long-term partner, we have benefitted from APCO’s commitment to our dealers. The additional resources APCO will provide our team, particularly in digital retailing, will give us better tools to help our dealers thrive in the changing times ahead,” Volatile said.
“In addition, being part of a large team will add depth and breadth to our support while providing addition growth opportunities for our teammates,” he went on to say.
APCO’s move arrived after National Auto Car acquired five more agencies late last month, pushing the F&I industry a bit toward the merger and acquisition trajectory that’s setting records in the franchised dealership world.
