Solera Holdings Inc. Acquires DMEautomotive

In breaking news for retail automotive, DMEautomotive has been acquired. Solera Holdings Inc. has purchased the Florida-based automotive organization in a release announced today. In a letter to DMEautomotive customers, Mike Walther, the company CEO said, “It has long been the mission of DME to deliver the science and value of direct marketing to the automotive industry through a foundation of trust and superior execution. These execution attributes were key influencers in Solera’s decision to purchase DME and remain paramount to our core.” That core for DME includes working with dealers, OEMs and service providers.

Specifically, DME will be combining with AutoPoint, another Solera company. DME is slated to be part of their service, maintenance and repair platform. Solera Holdings, the organization that has acquired DME Automotive, is a Risk and Asset Management software and service provider for the automotive and property management industry. Solera is in operation in 70 different countries.

Tony Aquila, Solera’s founder, Chairman and Chief Executive Officer has positive things to say about the move to acquire DME Automotive. In a press release, Aquila said, “The acquisition of DMEa is very exciting for us as it will further enrich our understanding of our customers’ customers on a personalized and household level. When combined with Solera’s vertical software solutions (SaaS) across the entire automotive lifecycle, this data will create powerful digital content to enhance the ownership experience and strengthen the relationship and transparency between our customers and their customers, resulting in a smoother ride through the ownership lifecycle via technology accessed on any device.”

This deal should be finalized by the end of June. The acquisition is subject to closing conditions such as Hart-Scott-Rodino anti-trust clearance. This means that details of the deal must be sent to the FTC and Department of Justice as part of the Hart-Scott-Rodino Antitrust improvements Act of 1976. Once the federal agencies have signed off on the deal it will be finalized. The expected finalization date is before the fourth quarter of Solera’s fiscal year, which finishes on June 30^th, 2015.

For further insight on the acquisition, we spoke to Mike Martinez, Chief Marketing Office at DMEautomotive. Asked “Why Solera and why right now?” Martinez told DrivingSales News, “Solera is a great partner who can help us achieve (our goals) – not only continue to grow on the services we provide for our clients – but they also has a similar view of the marketplace and the opportunity to bring together strategic assets that help the industry, and dealers in particular, drive owner loyalty and engagement. In Solera, we found absolutely the perfect partner in bring that vision to life and making it work for the automotive industry.”

What will DMEautomotive look like after being acquired by Solera? According to Martinez, not very different. Speaking on this subject Martinez explained, “It (the acquisition) really won’t have an impact on the branding of DMEautomotive. The DMEautomotive brand will remain in the marketplace. Our products will continue as they have been defined today. We’ll certainly take advantage of integration opportunities, but the DMEautomotive company remains a proud and while wholly owned, independent company in the marketplace.”

Finally, following up on the information provided by Solera about when the deal will officially be done Martinez elaborated. Speaking about the regulations that have to be cleared, Martinez said, “What was announced today was an agreement to acquire and be acquired. This all has to go through our friends at the Federal regulatory agencies. Assuming that that is completed and the deal is completed, we expect that to be done by the end of June.”