Carlyle and KKR in lead to buy Reynolds and Reynolds for $5 bn: report
26 Dec 2012
US-based private equity firms Carlyle Group and KKR & Co are the lead contenders to acquire Reynolds and Reynolds, a business management software company hoping to sell itself for $5 billion, Reuters reported yesterday, citing three people familiar with the matter.
The Dayton, Ohio-based company had, in October, hired technology-focused investment bank Qatalyst Partners to run a sale, and the auction has now progressed to its final stages, said the report.
Deutsche Bank is also helping Reynolds and Reynolds with the sale and has offered seller financing to potential buyers, the report added.
Founded in 1866, Reynolds and Reynolds started off as a forms printing company. In 1972, it diversified by providing automotive retailers standardised accounting forms for all franchised Chevrolet dealers.
That one simple product made the dealer's business more efficient and productive, and it made General Motors' task of analysing sales and forecasting demand much more consistent and effective.
Today, Reynolds and Reynolds provides software, business forms and supplies, and professional services that support all areas of automotive retailing for car dealers and automakers.
In 2006, Universal Computer Systems (UCS), backed by a group of investors that included Goldman Sachs private equity arm and Vista Equity Partners, acquired Reynolds and Reynolds for $2.8 billion.
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