Dealership technology company DealerSocket will be acquired by Solera Holdings Inc., which specializes in data and software for the insurance and automotive industries, Solera said Monday.
Terms of the deal were not disclosed, though Solera said in a news release that the acquisition is expected to close in the second quarter pending regulatory approval.
It was not immediately clear Monday what the acquisition will mean for DealerSocket, of Irving, Texas, which provides auto retailers with dealership management systems, customer relationship management platforms and other software.
DealerSocket representatives referred requests for comment to Solera, which declined to comment Monday beyond the news release. The companies declined to make executives available for an interview.
“The combination of DealerSocket with Solera allows us to offer dealerships a fully unified platform to simplify workflows and enables us to become the digital backbone across all areas of a connected dealership, simplifying and improving the retail experience,” DealerSocket CEO Sejal Pietrzak said in a statement.
Solera, of Westlake, Texas, also plans to acquire Omnitracs, which provides fleet management software.
“Solera is the driving force behind the rapid digitization of the vehicle life cycle, delivering intelligent, data-driven, mission-critical solutions for our customers,” Solera CEO Darko Dejanovic said in the statement. “These highly strategic acquisitions will enable us to expand into adjacent verticals and capitalize on emerging trends in our industry. Solera’s unique position in a large and growing market allows us to transform the industry through innovation, proprietary data assets, unmatched scale and deep customer relationships.”
All three companies are portfolio companies of private equity firm Vista Equity Partners. Vista bought a stake in DealerSocket in 2014. According to Vista’s website, a Vista fund completed a buyout of Omnitracs from Qualcomm Inc. in 2013, while a separate Vista fund took Solera private in 2016.
It was not immediately clear Monday what DealerSocket’s ownership structure would be going forward. The companies did not immediately say whether DealerSocket would retain its name, whether it would be a subsidiary or a division of Solera, or what Pietrzak’s role will be under the combined company.
Pietrzak was named to Automotive News‘ list of 100 Leading Women in the North American Auto Industry in 2020.
Last year, DealerSocket acquired franchised DMS provider Auto/Mate for an undisclosed price, though court documents estimated the deal at close to $200 million. The combined companies have more than 9,000 dealership customers. Pietrzak has told Automotive News that DealerSocket aims to provide dealerships “a one-stop shop” for technology products.
Solera said Kirkland & Ellis is advising the company on the transaction, while Ropes & Gray is working as legal counsel on the deal for DealerSocket, and Greenberg Traurig is doing so for Omnitracs.