Solera Holdings, an auto insurance software company, has completed the purchase of equity interests in a parent company of Service Repair Solutions from Welsh Carson Anderson & Stowe.
Solera Holdings, Inc. (“Solera”, “we” or “our”) (NYSE: SLH), a leading global provider of software and services to the automobile insurance claims processing and decision support industries, today announced that it has completed the purchase of equity interests in a parent company of Service Repair Solutions, Inc. (“SRS”) from an affiliate of Welsh, Carson, Anderson & Stowe (“Welsh Carson”), a leading private equity firm (the “Joint Venture”).
SRS is a leading provider in the $200 billion service, maintenance and repair (“SMR”) market with proprietary databases and workflow solutions that help mechanical repair shops and auto dealers to increase their efficiency, profitability and customer loyalty. SRS’s diagnostic and repair database includes over 800,000 user and expert-generated mechanical diagnoses and is utilized by approximately 225,000 auto technicians in over 50,000 repair shops in the U.S. and Canada. SRS’s dealer services business also leverages a proprietary database of more than 78 million repair orders, 28 million completed inspections and 9 million pages of OEM data used by approximately 1,000 auto dealers.
“We are excited about closing the SRS transaction. This is one of our anchor investments in the SMR market,” said Tony Aquila, Solera’s Founder, Chairman and Chief Executive Officer. “We look forward to building off of this very successful SMR platform as we expand this service across our global business.”
Solera is a leading global provider of software and services to the automobile insurance claims processing and decision support industries. Solera is active in more than 65 countries across six continents. The Solera companies include Audatex in the United States, Canada, and in more than 45 additional countries, Informex in Belgium and Greece, Sidexa in France, ABZ and Market Scan in the Netherlands, HPI in the United Kingdom, Hollander serving the North American recycling market, AUTOonline providing salvage disposition in a number of European and Latin American countries, IMS providing medical review services, and Explore providing data and analytics to United States property and casualty insurers. For more information, please refer to the company’s website at http://www.solerainc.com.
About Welsh, Carson, Anderson & Stowe
Welsh, Carson, Anderson & Stowe focuses its investment activity in two target industries, information/business services and healthcare. Since its founding in 1979, the Firm has organized 15 limited partnerships with total capital of $20 billion. WCAS has a current portfolio of over thirty companies. The Firm seeks to (i) invest in growth businesses, (ii) partner with outstanding management teams and (iii) build long-term value through a combination of operational improvements, strategic growth initiatives and complementary acquisitions. The Firm is currently investing from its eleventh equity fund, Welsh, Carson, Anderson & Stowe XI, L.P. See www.welshcarson.com to learn more.
Cautions about Forward-Looking Statements
This press release contains forward-looking statements, including statements about the value and benefits of SRS’s products and services to customers, both alone and in combination with our other products and services. These statements are based on our current expectations, estimates and assumptions and are subject to many risks, uncertainties and unknown future events that could cause actual results to differ materially. Actual results may differ materially from those set forth in this press release due to the risks and uncertainties inherent to transactions of this nature, SRS’s business and our business, including, without limitation: the failure to realize the expected benefits from our Joint Venture with Welsh Carson or our investment in or any subsequent acquisition of SRS; our inability to successfully integrate SRS’s business, including SRS’s existing employees, infrastructure and service offerings, with our existing businesses at reasonable cost, or at all; use of cash to service our debt and effects on our business of restrictive covenants in our debt facilities; our ability to obtain additional financing as necessary to support our operations; reliance on a limited number of customers for a substantial portion of our revenues; SRS’s and our reliance on third-party information for its and our products and services; impacts on SRS’s or our business of any restructuring or severance charges in future periods; effects of changes in or violations by SRS, us or its or our customers of government regulations; effects of competition on SRS’s or our product and service pricing and its and our business; risks associated with operating in multiple countries, including regulatory, political and exchange rate risk; effects of system failures, security breaches or regulatory violations on SRS’s and our business and reputation; risks associated with the uncertainty in and volatility of global economic conditions; and risks related to business expansion beyond SRS’s and our core products and services. For a discussion of these and other factors that could impact our business, operations or financial results and cause our results to differ materially from those in the forward-looking statements, please refer to our filings with the Securities and Exchange Commission, particularly our Quarterly Report on Form 10-Q for the Quarter Ended September 30, 2013. We are under no obligation to (and specifically disclaim any such obligation to) update or alter our forward-looking statements whether as a result of new information, future events or otherwise.