Reynolds and Reynolds Acquires HAC Group
17 April 2000
Reynolds and Reynolds Acquires HAC Group, World's Leading Auto Retailing Web Services Firm; Continues to Lead the Transformation of Automotive Retailing
DAYTON, Ohio--April 17, 2000--The Reynolds and Reynolds Company (NYSE:REY) today announced it has signed a definitive agreement to acquire HAC Group LLC, the world's leading provider of learning, customer relationship management (CRM) and Web services to automotive retailers and manufacturers.Fast-growing, privately held HAC Group had revenues of $65 million in 1999. The purchase price of about $140 million will consist of $108 million of cash and the issuance of approximately 1.2 million common shares. Contingent payments of up to $60 million may be paid out over the next three years based on performance.
Eustace W. Mita, HAC's president and chief executive, also has been nominated to fill an open position on Reynolds' board of directors created by an expired term.
"We have achieved consistent, double-digit growth throughout our history. This powerful combination with Reynolds will help us drive significant growth going forward," said Mita. "Reynolds clearly has a deep understanding of the role of e-business in the new automotive economy. Together, we are well positioned to drive e-business leadership in the automotive industry."
"The HAC Group is a premier services company, focused on transforming automotive retailing. Their deep automotive retailing experience has created value for thousands of automotive retailers and car companies around the world", said Lloyd "Buzz" Waterhouse, Reynolds' president and chief operating officer.
"We plan to integrate HAC's expertise with our own strong business services organization to create Reynolds Transformation Services. We will now offer the industry's most powerful suite of learning, CRM and Web services which we will drive across the worldwide automotive retailing marketplace."
"HAC has consistently grown its suite of services to automotive retailers and manufacturers since its inception. They have created a powerful resource for retailers interested in growing profits, increasing customer satisfaction and customer loyalty, and capturing the value of the Internet with unique business solutions," said Roger Penske, chairman of Penske Capital Partners, which is an investor in HAC Group LLC. "With this combination, Reynolds clearly strengthens its role as the world's leader in transforming automotive retailing."
Waterhouse said the acquisition of HAC Group is another step Reynolds has taken to become the e-business leader in the automotive retailing marketplace. Reynolds continues to play a major role with MSN CarPoint(TM), and provides several sophisticated electronic products and services to the automotive retailing industry, including AutoNotice electronic service reminders. Reynolds is also a strategic partner with e-fin LLC, the first comprehensive, full-service electronic financing marketplace in the automotive industry, and is working with Saturn to build an integrated, real-time, Web-enabled automotive retail management system. Additionally, Reynolds is one of the founding parties of an independent company that will develop an electronic parts network to link buyers and sellers in a cost-efficient, user-friendly, Web-based solution for the multi-billion dollar automotive parts market.
Headquartered in Philadelphia, HAC Group LLC was founded in 1981. Offering best of class learning services, CRM and Web service capabilities, the company operates in 19 countries. HAC's offerings, which will be directly integrated with Reynolds' existing programs, include:
-- Trade Cycle Technology and Retail Renewal Revolution, which
enables dealerships to engage effective CRM programs to
manage and strengthen the loyalty of their entire customer
base,
-- Cyber Car(TM), which provides Internet sales strategies and
services,
-- Automark, which provides integrated Web-based services
including Web hosting and Web site design,
-- Loyalty Management University, which offers programs
designed to increase sales throughout an auto retailer's
existing customer base, and
-- Lease Strategies, which provides auto retailers with lease
renewal support tools and purchase/lease presentation
software.
Reynolds and Reynolds, headquartered in Dayton, Ohio, is a leading provider of integrated information management systems and related value-added services to automotive and general business markets. The company reported revenues of $1.56 billion in fiscal year 1999. For more information on Reynolds and Reynolds, visit www.reyrey.com, or call The Reynolds and Reynolds Information Hotline at 1-888-4REYREY.
Certain statements in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on current expectations, estimates, forecasts and projections of future company or industry performance based on management's judgment, beliefs, current trends and market conditions. Forward-looking statements made or to be made by or on behalf of the company may be identified by the use of words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," and similar expressions. Forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions which are difficult to predict. Actual outcomes and results may differ materially from what is expressed, forecasted or implied in the forward-looking statements. See also the discussion of factors that may affect future results contained in the company's Current Report on Form 8-K filed with the SEC on February 9, 2000, which we incorporate herein by reference. The company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.