STOCKHOLM, Jan. 3, 2020 /PRNewswire/ -- Drew Technologies,
Inc., an Opus IVS division company, acquired US-based
AutoEnginuity, LLC for a purchase price of approximately
USD 20 million (approximately
SEK 187 million) on a cash-free and
debt-free basis. All conditions for completion of the acquisition
of AutoEnginuity have been met.
Background and reasons for the Acquisition
AutoEnginuity, founded in 2003 and headquartered in Mesa, Arizona, has developed into a leader in
advanced aftermarket automotive diagnostics software and associated
vehicle make/model coverage. The combined Opus IVS companies serve
an existing customer base of 50,000 automotive repair shops
globally, by providing market leading vehicle diagnostics and
vehicle communication offerings to address the trend of increased
vehicle digitalization and automation.
- Drew Technologies, Inc. (Drew Tech) has acquired the membership
interests of AutoEnginuity, LLC for a purchase price of
approximately USD 20 million
(approximately SEK 187 million) on a
cash-free and debt-free basis. Drew Tech paid USD 10 million at closing and will make
additional payments of USD 5 million
in 2021 and USD 5 million in
2022.
- Additional amounts may be paid over the next 5 years depending
on performance of the AutoEnginuity business.
- With the acquisition, AutoEnginuity becomes a subsidiary of
Drew Tech, managed under the Opus IVS division. AutoEnginuity
management signed multi-year employment agreements; all staff are
expected to continue working under the Opus ownership.
- AutoEnginuity is a leader in advanced aftermarket vehicle
diagnostics with coverage for 56 vehicle brands, including all
important U.S., European and Asian brands.
- Their broad coverage and diagnostic depth represent an
interesting growth potential for Opus IVS.
- In 2019, AutoEnginuity had revenues of approximately
USD 4 million (approximately
SEK 37 million) with EBITDA (adjusted
for non-recurring items) of approximately USD 2.3 million (approximately SEK 22 million).
- In 2020, the AutoEnginuity acquisition is estimated to increase
Opus' EBITA by >5%. Cash Flow in 2020 will be negatively
affected by approximately SEK 70
million.
- The closing payment of USD 10
million (approximately SEK 93
million) is financed through existing cash within Opus
Group.
- This acquisition brings the total Opus IVS offices to 7, with
U.S. locations in New York,
Michigan, California, North
Carolina and Arizona; and
others in the UK and Australia.
"We are excited about the acquisition of AutoEnginuity due to
the company's status as a leader in multi-brand advanced automotive
diagnostics and it being widely used in the US collision scanning
market. We see a great fit with our existing products and services
in the Opus IVS division. Building on Autologic's European
diagnostics technology and support services, Opus IVS can now
expand its products and services lineup to cover all brands within
the US market", said Lothar Geilen,
CEO of Opus. "I want to express a warm welcome to the employees at
AutoEnginuity. We are looking forward to having the AutoEnginuity
employees become a part of the Opus family" Geilen continued.
"As Opus IVS continues to expand its products and coverage into
new markets, AutoEnginuity will allow greater vehicle coverage and
support for more diagnostic platforms. By adding the AutoEnginuity
diagnostic coverage to our DrivePro platform, Opus IVS repair
customers will soon have more capability. Leveraging AutoEnginuity
diagnostic coverage will solidify the DriveCrash platform as a
technology leader for the U.S. collision scanning industry",
Brian Herron, President of the Opus
IVS division stated.
For more information about AutoEnginuity please visit
www.autoenginuity.com; for Opus visit www.opus.global; and for
Opus IVS please visit www.opusivs.com.
This announcement does not change the Board's statement with
regards to the public offer from Ograi/Searchlight as announced on
December 20, 2019.
Gothenburg, January 3, 2020
Opus Group AB (publ)
This is information that Opus Group AB (publ) is obliged to make
public pursuant to the EU Market Abuse Regulation. The information
was submitted for publication, through the agency of the contact
persons set out herein, at 08:00 CET
on January 3, 2020.
CONTACT:
For additional information, please contact:
Lothar Geilen, CEO
Tel: +46-31-748-34-00
E-mail: lothar.geilen@opus.se
Helene Carlson
Director of Corporate Communications & Investor Relations
Tel: +46-765-25-84-93
E-mail: helene.carlson@opus.se
This information was brought to you by Cision
http://news.cision.com
https://news.cision.com/opus-group/r/opus-acquires-autoenginuity,c3000718
The following files are available for download:
https://mb.cision.com/Main/5106/3000718/1169501.pdf
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