March 4, 2016 — After several weeks of uncertainty created by a tanking junk bond market, Vista Equity Partners completed its acquisition of Solera Holdings, a global firm that provides risk and asset management software for the automotive industry. Vista led an investment group comprised of Koch Equity Development and Goldman Sachs in the approximately $6.5 billion deal, which was initiated last fall.
The acquisition is one of Wall Street’s biggest leveraged buyouts over the last year. The deal ran into problems within the last couple of weeks because the players encountered a lukewarm reception on the Street when trying to sell a $4 billion debt and loan package to help finance the acquisition. Goldman Sachs, which was brought into the deal last September to help finance it, had found buyers for only half of the nearly $2 billion bond package it was trying to sell as part of the financing. The junk bond market has cratered in recent weeks as bankers shied away from potentially riskier deals.
The deal was completed when Solera agreed to offer fewer bonds for sell while increasing the size of the securitized loan package
Vista, meanwhile, is paying $55.85 per share (nearly $3.75 billion in cash) which is about 53% higher than the stock was a month prior to the deal being announced in September.
The deal creates intriguing possibilities for DealerSocket, which is also owned by Vista Equity. DealerSocket, which is one of automotive retail’s leading CRM providers, likely will be able to leverage Solera’s AutoPoint, which provides software services in the service, maintenance and repair areas to dealerships.
Solera is a global company with more than 195,000 customers involved in vehicle transaction process, including valuations, insurance, electronic titling, service and repair and consumer loyalty.
Read the news release announcing the acquisition here.