Reynolds Exploring $5 Billion LBO
New York — Citing several unnamed sources familiar with the matter, Reuters reported last week that Reynolds and Reynolds is considering a sale to private equity firms in a deal that could be worth $5 billion. According to the report, Reynolds has hired technology-focused investment bank Qatalyst Partners to manage the process. It also indicated that Reynolds is already in talks with a few major private equity firms about a leveraged buyout.
As of press time, Qatalyst had not responded to a request for comment, and a representative with Reynolds and Reynolds said he could not comment on the matter.
“As a matter of policy and practice, we don’t comment on market rumors,” said Tom Schwartz, spokesman for the software company.
Deutsche Bank, according to the Reuters report, is also helping Reynolds, which claims more than $500 million in annual earnings, with the potential sales.
Founded in 1866 by Lucius Reynolds and his brother-in-law, Reynolds started as a company that printed standardized business forms. It didn’t begin serving auto dealers until the 1920s. The company was purchased by Universal Computer Systems’ Bob Brockman, the company’s current chief executive, in 2006 for $2.8 billion. The buyout was funded primarily by a group of investors that included Goldman Sachs Capital Partners, the private equity arm of Goldman Sachs Group, and Vista Equity Partners.
More Industry

Ownership Priorities are Shifting
A new survey shows that in the U.S. vehicle quality for generation Z is largely defined by advanced safety features, intuitive technology and premium sound systems.
Read More →
Pump Price Jump Calculated
ISeeCars.com examined fuel costs for different power trains, finding which ones have experienced the biggest hits since the war in Iran commenced.
Read More →
Black Book: Weekly Market Update
Wholesale values fell last week despite the spring season still being in the traditional full-gear mode, analysts said.
Read More →
Arkansas Auto Group Acquires First Indiana Rooftop
Performance Brokerage Services represented both the buyer and seller in the sale of Carver Toyota of Columbus by Carlock Automotive Group.
Read More →
Stellantis to Dive Into U.S. Lending
The multinational maker of Chrysler, Dodge, Jeep, Ram and multiple other brands received conditional approvals for a Utah-based industrial bank.
Read More →
New-Vehicle Prices Rise
With April sales down, higher prices on in-demand large vehicles helped inflate the overall ATP, though increases were under long-term averages, Cox Automotive reported.
Read More →
Black Book: Weekly Market Update
Last week in the wholesale automotive market proved to be a mixed bag, analysts reported.
Read More →
Black Book: Weekly Market Update
Conversion rates were flat last week at 63%, Black Book analysts calculated, as low-mileage and almost-near units outpaced the overall market.
Read More →
EU Auto Association Urges Action
Trade relations between the European Union and the U.S. are at risk, causing the European Automobile Manufacturers Association to push lawmakers to make a decision.
Read More →
Driving into the Super CFC Era
Understanding the risks and benefits of retail accounting and Super CFCs can help you better present options to your dealer partners.
Read More →