Reynolds and Reynolds acquires Incadea AG, provider of a leading international software platform for automotive retailing

Raubling, Germany, October 2 -- - Incadea partner network considered to be valuable asset

The Reynolds and Reynolds Company today announced the acquisition of Incadea AG, a privately held provider of global automotive retailing software solutions.

With Incadea, Reynolds plans to significantly extend its global range by adding the company's fast-growing, international software platform to its portfolio of automotive retailing solutions. As part of this action, Reynolds is expanding its existing strategic alliance with Microsoft. Reynolds and Microsoft will market the incadea.engine platform, based on Microsoft Navision, worldwide.

Peter Wenger, Incadea CEO, said, "Incadea has grown and prospered through a strategy of building automotive solutions on a flexible Microsoft platform and distributing them through Incadea solutions centers. Reynolds has embraced this successful business model and will continue the practice of relying on partners for distribution outside the US and Canada. Our acquisition by Reynolds gives us the additional resources we need to continue the growth of the incadea.engine and expands the capabilities that we can deliver. This is great news for our OEM customers, end users, employees and partners."

Incadea operations will remain in Raubling. All Incadea employees will be retained, including founders Wenger and Andreas Bohnert. Reynolds will also continue Incadea's partner-driven distribution model in international markets.

Lloyd "Buzz" Waterhouse, Reynolds CEO, chairman and president, said, "Reynolds is today making an aggressive, game-changing move within the global automotive retailing marketplace by forming a new global business unit, acquiring Incadea and expanding its strategic alliance with Microsoft. None of our competitors can match the combination of technology, solutions, automotive retailing experience and global capability that will be delivered by the combination of Reynolds, Incadea and Microsoft."

The Incadea platform is a unique, industry-first solution for automotive retailing. Based on Microsoft Windows and Navision enterprise resource planning (ERP) software, it is supported by Microsoft and a multi-continent network of partners who customise it with country-specific layers. The platform can be rapidly localised and deployed on a large scale across multiple countries and languages. It delivers the standardisation and process-driven benefits of ERP, while providing a flexible, easy-to-use and implement platform.

"The game changer is that this incredibly powerful solution combination will now be augmented by the rich automotive retailing experience and resources of Reynolds and our partnership with Microsoft," said Waterhouse.

"Most importantly, and key to our fast-growth plans for outside the US and Canada, we will not face the challenge of supporting multiple platforms, a problem that continues to plague other companies that have relied on multiple acquisitions to grow their global businesses. Incadea's existing partner network is also a key factor in its success and is a very valuable asset in itself," Waterhouse said.

Jean-Philippe Courtois, CEO of Microsoft Europe/Middle East/Africa, said, "Microsoft has partnered separately with both Reynolds and Incadea in the development of superior technology solutions for the automotive retailing market. For the first time, we look forward to working with them as a united company. Together, we will extend the global reach and presence of the Navision-based Incadea platform. We believe strongly that Incadea represents a winning solution based on its flexibility and low cost of implementation compared to other solutions on the market."

Reynolds also announced that it is forming a new Reynolds International Division that will operate through three regional groups-Europe, Middle East and Africa (EMEA); Asia-Pacific; and Latin America. The EMEA operation will be headquartered in Zurich, Switzerland, with software labs and operations centers in Raubling, Germany, and Evesham in the United Kingdom. Dale Medford, Reynolds executive vice president and chief financial officer, will serve as acting senior vice president of the unit until a permanent head is identified. Reynolds' existing international consulting operations will be included in the new division.

Concurrent with the acquisition of Incadea, Reynolds will expand its strategic alliance with Microsoft to collaborate on technology, sales and marketing aimed at accelerating international growth for both companies. Reynolds is Microsoft's premier and largest vertical market independent software vendor ISV focused on automotive retailing.

About Incadea

Incadea AG ( http://www.incadea.de/ ), founded in February 2000, is the developer of a software platform called the incadea.engine, built on Microsoft Navision. Incadea works with local partners to adapt the incadea.engine to local markets. Incadea has 3,500 users in more than 200 dealerships across 18 European countries. It has received endorsements from franchises including BMW, Opel, Volvo, Mitsubishi, FIAT/Alfa Romeo/Lancia and Citroen. It also serves additional brands. Outside of Europe, Incadea has established partner relationships that extend its range to Asia, Australia, Africa and Latin America.