Software firm Solera to acquire Identifix

WESTLAKE, Texas (July 16, 2015)  — Software provider Solera Holdings Inc. has agreed to buy outright Identifix Inc., an online vehicle diagnostics database and service provider.

Solera purchased 50 percent of Identifix in 2013 in connection with its Service Repair Solutions (SRS) joint venture with Welsh Carson Anderson & Stow (WCAS).

Solera has since acquired automotive service and customer relationship management software companies AutoPoint, Service Dynamics and DMEautomotive.

Under terms of the agreement, Solera will purchase the remaining SRS joint venture interests from WCAS for a purchase price of about $594.8 million in cash plus WCAS' approximate share of SRS' present cash balance of $25 million.

The acquisition is subject to certain closing conditions.

“Identifix is a one-of-a-kind asset for the SMR (service, maintenance and repair) vertical and an important pillar of our digital risk and asset management platform,” said Tony Aquila, Solera's founder, chairman and CEO.

“Since our initial investment, the Identifix business has performed in-line with our expectations and has achieved double-digit revenue growth each year. One-hundred-percent ownership of Identifix will not only allow us to introduce the power of Identifix to international markets, but will also accelerate the integration of our industry-leading SMR solution into our Digital Garage app.”

The Digital Garage is a mobile app Solera developed to help both automotive service providers and drivers to manage digitally the buying, maintaining and selling of vehicles. Scheduled for its debut release in the United Kingdom later this year, the Digital Garage leverages Solera's risk and asset management technologies to create an application that allows car owners to digitally manage the ownership lifecycle of their vehicles from their mobile devices, the company said.

The acquisition of Identifix will help Solera reach its goal of $2 billion in revenue and $840 million of adjusted EBITDA by June 30, 2020, the company said.

“Over the past nine years, we've invested over $3 billion to acquire 35 key businesses,” Mr. Aquila said. “We are now accelerating our focus on leveraging synergies to expand our leadership in risk and asset management, including our growing digital SMR and CRM (customer relationship management) businesses, as well as our upcoming Digital Garage app.”

Roseville, Minn.-based Identifix offers vehicle diagnostics, OEM service and repair information, factory scheduled maintenance plans and repair estimating. The company's products and services include the online tool Direct-Hit and its technical repair data. Founded in 1987, Identifix serves customers in the U.S., Canada and Latin America.