Publicly-traded IHS Markit has acquired 78 percent of AutomotiveMastermind for a purchase price of approximately $392 million. An additional $43 million of consideration can be earned based on post-closing operating performance. IHS Markit will acquire the remaining 22 percent over the next five years.
AutomotiveMastermind, a portfolio company of JMI Equity since November 2016, provides cloud-based software that is used by automotive dealers to predict automobile-buying behavior and it also automates the creation of customer communications in order to increase product sales and improve retention rates. The company’s software products are used by more than 1,000 dealers across 15 automotive brands including Mercedes-Benz, BMW, MINI, Audi, Cadillac, Honda, Lexus, and Acura. AutomotiveMastermind was founded in 2012 by Johannes Gnauck and Marco Schnabl and is headquartered in New York with a product innovation office in San Francisco (www.automotivemastermind.com).
“Through our core automotive assets, which includes CARFAX, we already provide our global automotive customers with a comprehensive suite of information services and analytics,” said Jonathan Gear, Executive Vice President of Transportation and Resources for IHS Markit. “The addition of AutomotiveMastermind extends our capabilities further. It enables us to deliver a powerful set of tools — including data aggregation and analytics driven by machine learning — that will help OEMs and dealers sell cars more effectively.”
IHS Markit (NASDAQ: INFO) is a provider of data, information and analysis to businesses and governments in the aerospace, defense and security; automotive; chemical; energy; maritime and trade; and technology industries. The company has more than 50,000 business and government customers, including 85 percent of the Fortune Global 500. IHS Markit had revenues of more than $2.7 billion in 2016 and is headquartered in London, UK (www.ihsmarkit.com).
“The acquisition of AutomotiveMastermind opens up a key new market for IHS Markit, and increases our presence in the vehicle retail space,” said Jerre Stead, the Chairman and CEO of IHS Markit. “It’s an excellent strategic fit for us within our overall portfolio, and helps to fill out our existing offerings by leveraging predictive analytics to improve the buyer experience. We now deliver unparalleled insight and analytics across the automotive lifecycle: from vehicle strategy and product planning, to vehicle sales, marketing and repair.”
JMI Equity invests from $15 million to $100 million of growth equity in software and technology-enabled services companies. Founded in 1992, JMI has invested in more than 130 businesses and has raised over $3 billion in committed capital. The firm has offices in San Diego and Baltimore (www.jmi.com).
Jefferies was the financial advisor to AutomotiveMastermind and Goodwin Procter provided legal services.
© 2017 Private Equity Professional | September 26, 2017
