OEConnection could be up for sale later this year, according to Reuters
Reuters reports that anonymous sources have said Genstar is considering selling OEConnection (OEC).
The sale is expected to begin later this year, according to the article.
Genstar declined to comment and answer questions from Repairer Driven News. OEC didn’t respond to RDN’s questions by the publication deadline.
According to Reuters, OEC generates $200 million in earnings before interest, taxes, depreciation, and amortization (EBITDA), and $400 million in annual revenue. Its sources shared that OEC would likely be valued at more than 20 times its EBITDA, with estimates ranging between $4 billion and $5 billion.
Genstar Capital bought a controlling stake in OEC in August 2019, with minority shares held by Ford and General Motors. Before that, Providence Equity Partners had been the majority owner.
Eli Weiss, Genstar managing partner (formerly managing director), previously said that Genstar’s investment focus in the software sector “is to identify companies operating in dynamic markets with opportunities to accelerate growth. We will aggressively identify key acquisitions and opportunities to broaden OEC’s product mix, expand its geographic footprint, and enter adjacent market segments,” according to previous Repairer Driven News articles.
OEC was founded in 2000 as a partnership between several OEMs, including Ford and GM, to provide technology solutions to facilitate the sale of OE replacement parts between automakers and franchised dealers and their wholesale customers. The company later expanded to provide software and technology solutions in the data, supply chain, and service segments of OEM businesses.
In 2020, OEC acquired fellow auto aftermarket software provider, NuGenIT.
In October 2021, OEC acquired VeriFacts Automotive, and in November of the same year, purchased the Assured Performance Network, further broadening the company’s management of OEM certification programs for collision centers.
About two months later, Overall Parts Solutions (OPS) announced that it would merge with OEC, including the OPSTrax parts management and delivery system.
Images
Featured image: OEConnection’s headquarters are shown. (RDN file photo)