HGGC is looking for a buyer for automotive software company AutoAlert, four sources familiar with the process told Buyouts.
The process has moved through first-round bids, primarily made up of PE sponsors, the people said. The company’s sale could fetch up to $500 million, one source said. AutoAlert generated around $115 million in revenue, two people said.
Jefferies is advising the company on the sale, they said.
AutoAlert, of Irvine, California, is a provider of cloud-based data services to car dealerships. The company helps automotive dealers identify new sales opportunities through predictive analytics.
HGGC invested in AutoAlert in 2014 out of HGGC Fund II, which closed on $1.3 billion in March 2015. The investment was below $300 million, WSJ reported in 2014. The company’s co-founders also reinvested in AutoAlert and owned between 30 percent and 49 percent of the company, the article said.
Private equity firms have been increasingly active in the automotive software market.
Providence Equity is taking bids for OEConnection, a software maker for the automotive market. The firm, which owns a stake in the company along with General Motors and Ford, wants to sell the company for almost $1.5 billion.
In May, Thoma Bravo acquired AutoData Solutions, a provider of software and SaaS solutions that aims to increase the effectiveness of the automotive sales chain.
HGGC declined to comment. AutoAlert did not return request for comment before press time.
Action Item: Contact Farouk Hussein, a leading principal on the investment.