Investment firm agrees to acquire OEConnection from Genstar Capital

Francisco Partners, a global investment firm, announced Tuesday that it has agreed to acquire OEConnection LLC from Genstar Capital, a private equity firm. 

OEC was founded in 2000 as a partnership between several OEMs, including Ford and General Motors, to provide a technology solution to facilitate the sale of OE replacement parts between automakers and franchised dealers and their wholesale customers. 

“Over time, OEC has significantly expanded its capabilities and now powers connections across a broad automotive aftersales network, serving OEMs, repair shops, and aftermarket suppliers,” a press release says. “Its solutions enable seamless collaboration throughout the vehicle repair lifecycle, making it easier to deliver quality repairs to vehicle owners.”

OEC spans six countries, has 1,500 employees, and its customers include 45 manufacturers, 30,000 vehicle dealers, and 135,000 wholesale customers, according to the release. 

“Joining forces with Francisco Partners positions OEC to build on our strong momentum and further strengthen the value we deliver to our customers and partners,” said Patrick Brown, CEO of OEC, in the release. “Our transformative partnership with Genstar has enabled us to significantly expand our offerings in collision and mechanical repair, accelerate innovation, and grow our network globally. We are pleased that Genstar, Ford, and General Motors will remain minority investors as we enter this next chapter. With Francisco Partners’ support, we look forward to continuing to deliver industry-leading solutions and improving repair outcomes for all stakeholders in the automotive aftersales ecosystem.”

Francisco Partners specializes in partnering with technology and technology-enabled businesses, the release says. It launched more than 25 years ago and has invested in more than 500 technology companies. It has more than $50 billion in capital raised to date. 

“OEC’s vision of ‘eliminating the pain in the vehicle repair process’ resonates strongly with us,” said Petri Oksanen, partner at Francisco Partners, in the release. “As the industry undergoes a generational and technological shift, OEC is uniquely positioned as a trusted partner that can deliver greater connectivity, efficiency, and profitability across the ecosystem.” 

Genstar Capital has been investing in high-quality companies for more than 35 years, the release says. It currently has about $50 billion of assets under management and targets investments focused on software, financial services, industrial, and healthcare segments. 

“It has been a pleasure working with Patrick and the OEC management team as they have significantly grown OEC over our ownership period,” said Eli Weiss, managing partner of Genstar. “We are excited to remain a minority shareholder and are confident that under Francisco Partners’ ownership, OEC is well positioned for continued growth and success.”

Evercore is serving as exclusive financial advisor and Ropes and Gray LLP is serving as legal advisor to Genstar in the transaction. Citi and TD Securities are serving as financial advisors and Paul Hastings LLP is serving as legal advisor to Francisco Partners.

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OEC logo provided by OEC.