Internet Brands, a portfolio company of KKR, has agreed to sell its Autodata Solutions Group to Thoma Bravo.
Autodata Solutions serves the automotive industry with software and SaaS solutions that increase the effectiveness of the automotive sales chain. The company’s products range from back-end automation systems that enable dealer-to-OEM vehicle ordering to data-driven marketing initiatives such as brand websites, dealer websites, and dealership sales tools.
Customers of Autodata include most of the automotive companies in North America including Chrysler, Ford, GM, Nissan, Toyota, Mazda, Honda, Hyundai, Kia, Volvo, and Jaguar. The company, founded in 1990, is headquartered in London, ON and Troy, MI with additional offices in Portland, OR; Minneapolis, MN; and Calgary, AB (www.autodata.net).
Following the close of the transaction, expected before the end of May, the Autodata management team will remain with the company and will continue to operate from its current headquarters.
“I’m thrilled to be leading Autodata Solutions as we begin our new partnership with Thoma Bravo,” said Craig Jennings, president of Autodata. “The Autodata story is amazing; starting with a small core group of executives that built the business, to an organization that today has more than 700 employees. We have grown rapidly over three decades and all the while serving the most prestigious brands and partners in the automotive industry.”
“As technological innovation drives massive change within the automotive industry, we believe Autodata is well positioned to be at the forefront of that future,” said Scott Crabill, a managing partner at Thoma Bravo. “Our operational knowledge within the software industry and ability to leverage resources can only enhance the company’s unique data-driven solutions and interactive marketing initiatives.”
Thoma Bravo specializes in investing in application, infrastructure and security software and technology-enabled services businesses. The firm’s investments typically are in the form of take-private transactions, leveraged buy-outs and growth equity investments in established companies that have or can quickly reach EBITDA of greater than $50 million. Thoma Bravo has offices in Chicago and San Francisco (www.thomabravo.com).
In January 2019, Thoma Bravo completed fundraising for Thoma Bravo Fund XIII LP with $12.6 billion in capital. The closing of Fund XIII follows the April 2018 hard-cap close of Thoma Bravo Discover Fund II LP with $2.4 billion of capital. The firm’s Discover middle market funds invest from $50 million to $300 million of equity in each transaction while its flagship funds, like Fund XIII, invest in larger opportunities that require equity from $400 million to over $1 billion. Since 2003, Thoma Bravo has completed over 200 software and technology acquisitions (over 60 platform companies and over 140 add-ons) with an aggregate value of about $57 billion.
Internet Brands is an online media and technology company that serves businesses and consumers in four major categories: Automotive, Health, Legal, and Home/Travel. The company’s websites serve more than 250 million monthly visitors and include WebMD, Avvo, CarsDirect, and Fodor’s Travel. Internet Brands employs more than 5,000 people and is headquartered in El Segundo, CA with more than 20 additional global offices (www.internetbrands.com).
Internet Brands was acquired in June 2014 by KKR from Hellman & Friedman and JMI Equity. “Over the last five years, we have worked with the Internet Brands and Autodata management teams to build a leading automotive software and market services platform by maintaining Autodata’s product edge through organic and inorganic investments,” said KKR members Herald Chen and John Park in a released statement. “We are confident it will retain this positive trajectory and track record of innovation under Thoma Bravo’s ownership.”
KKR (NYSE: KKR) makes private equity, fixed income and other investments in companies in North America, Europe, Asia and the Middle East. KKR was founded in 1976 and in addition to its New York headquarters has offices in 19 cities around the world (www.kkr.com).
RBC Capital Markets (www.rbccm.com) was the financial advisor to Internet Brands. Financing for the transaction is being provided by RBC Capital Markets and KKR Capital Markets.
© 2019 Private Equity Professional | May 1, 2019