Reynolds & Reynolds Acquires HAC Group
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The Reynolds and Reynolds Co. said it will pay $140 million to acquire HAC Group LLC, a provider of learning, customer relationship management (CRM) and Web services to automotive retailers and manufacturers.
Reynolds (REY), moving to bolster its position as an e-business player in the automotive retailing marketplace, recently announced its intent to sell or spin off its $730 million document services division.
Privately held HAC Group had revenues of $65 million in 1999. The purchase price of about $140 million will consist of $108 million in cash and 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, Reynolds said.
Eustace W. Mita, HAC's president and chief executive, will fill an open position on Reynolds' board of directors.
Reynolds continues to play a role with MSN CarPoint, and provides several electronic products and services to the automotive retailing industry, including AutoNotice electronic service reminders.
Reynolds is also a strategic partner with e-fin LLC, a, 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.
Reynolds and Reynolds, with revenues of $1.56 billion in fiscal year 1999, is a provider of integrated information management systems and related value-added services to automotive and general business markets.