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October 01, 2014 02:00 AM

ARI acquires TCS Technologies

Tire Business Staff
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    MILWAUKEE (Oct. 1, 2014) — ARI Network Services Inc. has acquired TCS Technologies, a provider of software, websites and digital marketing services designed exclusively for dealers, wholesalers, retreaders and manufacturers within the automotive tire and wheel vertical.

    ARI, a software, website and data solutions provider, said the terms of the transaction were not disclosed.

    “ARI's growth strategy continues to be fueled by a combination of organic growth and strategic acquisitions,” said Roy W. Olivier, the company's president and CEO.

    The acquisition of TCS aligns with ARI's strategy because it “consolidates our position as the leading provider of eCommerce-enabled websites and digital marketing services in the automotive tire and wheel industry,” he said.

    (ARI Network Services Inc. photo)

    Roy W. Olivier, CEO and president of ARI Network Services Inc.

    Additionally, TCS said it provides solutions for the entire automotive tire and wheel supply chain and offers a point-of-sale solution for tire and wheel dealers as well as for auto repair shops.

    “We believe the combined entity will accelerate our growth and leadership position in this market for the foreseeable future,” Mr. Olivier added.

    ARI said more than 20,000 automotive tire and wheel dealers depend on TCS's websites and software tools, which are enhanced by more than 750 wheel and tire wholesale distributor connections and eCatalog data for more than 50,000 wheels and 65,000 tires.

    TCS will maintain normal operations out of its headquarters located in Cookeville, Tenn., under the continued leadership of Barry D. Reese, who will assume the role of vice president and general manager of TCS Technologies, an ARI company.

    “At TCS, we pride ourselves on our industry-wide reputation for providing efficient and effective technology solutions,” Mr. Reese said.

    “Together with ARI, we will innovate faster to create comprehensive solutions at a pace that is unmatched by our competition.”

    ARI CFO William Nurthen added that the company expects the TCS acquisition to “generate incremental revenue of approximately $5 million and be accretive to EBITDA for fiscal 2015.”

    ARI previously acquired 50 Below Sales & Marketing Inc., a provider of eCommerce websites to the tire and wheel aftermarket, in 2013, after acquiring in  November 2012 the assets of 50 Below's retail division, which included more than 3,500 dealer websites. That move more than doubled the size of ARI's website business.

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