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 said it intends to integrate HAC’s expertise with its own business
services organization to create Reynolds Transformation Services, allowing
the company to offer a suite of learning, CRM and Web services in the
automotive space.
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.