According to Reuters, dealer management software provider Reynolds and Reynolds is in talks for a possible leveraged buyout, according to sources close to the discussion. The privately held company has hired investment bank Qatalyst Partners to oversee a possible sale, which could be as much as $5 billion U.S. Additionally, Deutsche Bank is also helping Reynolds and Reynolds court potential suitors, which represent some of the largest private equity firms in the technology field.
Because of the private nature of this deal, not much information is currently available – representatives of Reynolds and Reynolds declining to comment at present. However, in an article published by Reuters, sources attributed to the talks allegedly reported global investment firm KKR & Company is one of the suitors, while the auction process is said to be in the preliminary stages, with meetings scheduled to occur over the next several weeks.
A previous sale saw Reynolds and Reynolds merge with Universal Computer Systems, as part of a $2.8 billion U.S. private equity deal back in 2006. Said deal, funded by a group of investors that included Goldman Sachs Capital Partners and Vista Equity Partners, saw the retention of the Reynolds and Reynolds company name with former UCS CEO Bob Brockman installed as chairman of the new organization
Reynolds and Reynolds, which was originally founded back in 1866, started out printing business forms, before getting into the fledgling auto business in 1927, from which it grew to be a key data management provider for dealers. The company expanded from the U.S. into Canada in 1963 and currently serves dealers across North America and also in Europe.
