Infomedia to Acquire SimpleParts
Infomedia to Acquire SimpleParts
SYDNEY - May 6, 2021 - (Newswire.com)
Infomedia Ltd (ASX:IFM), a leading software provider in parts, service and data insights solutions to the global automotive industry, today announced that IFM Americas Inc., a wholly owned subsidiary of Infomedia Ltd, has entered into an agreement to acquire U.S.-based e-commerce platform SimplePart.
SimplePart designs, implements and manages consumer-facing e-commerce programs in the U.S. and Canada for many of the world's top automakers, helping them increase their sales of genuine automaker parts, accessories and service.
SimplePart's intuitive, purpose-designed e-commerce platform provides automaker and dealer customers a branded website, online store, and digital marketing support to power successful e-commerce programs. The leading-edge platform also includes sophisticated production systems that can catalogue complex automaker data and provide extensive reporting and insights to increase aftersales revenue; features not commonly available with other e-commerce solutions.
Infomedia's CEO Jonathan Rubinsztein said, "This is a very exciting acquisition as auto e-commerce is a strategic extension of our core global offering. SimplePart enables Infomedia to further penetrate the automaker parts ecosystem and transforms our presence in the Americas.
"SimplePart delivers a leading capability in automaker and dealer e-commerce solutions and uniquely positions Infomedia to provide our shared customer base with an expanded range of market-leading business-to-business and business-to-consumer parts, service and data insights solutions. With SimplePart, we can offer a total solution.
"SimplePart is profitable, cash-flow generative and growing in North America. Our opportunity is to support that growth trajectory and offer our combined customer base additional products and value-adding Software-as-a-Service (SaaS) solutions in all the regions in which Infomedia operates."
SimplePart founder Cole Getzler, together with President Michael Oki, will continue to run the business from its base in Atlanta, Georgia (USA).
"This transaction is a unique opportunity for SimplePart to partner with a global leader in parts and service software that shares our philosophy of developing and delivering innovative, industry-leading fixed-operation solutions. We are looking forward to sharing our solutions globally, an opportunity every entrepreneur looks to pursue for the benefit of the business and the team," Getzler said.
Under the terms of the agreement, Infomedia will acquire 100% of SimplePart for a purchase price comprising upfront consideration of USD $24.5 million, plus an earn-out of up to USD $20.5 million which will be calculated based on SimplePart's EBIT over three years.
The transaction is expected to be EPS-accretive from the first full year of acquisition on a pro forma basis. Completion of the transaction is subject to satisfying customary closing conditions and is expected to close on or before June 30, 2021.
Infomedia continues to assess further acquisition targets with a focus on assets that enhance its core parts, service and data insights offerings and extend its capabilities, open access to new customers and increase its reach in key geographic markets.
About Infomedia: Infomedia Ltd (ASX:IFM) is an Australian-based SaaS platform provider in parts, service and data insights solutions to the global automotive industry. Infomedia has led innovation in aftersales technology within global automotive distribution networks for more than 25 years and continues to expand its reach within the three regions in which it operates. Please visit Infomedia's website https://www.infomedia.com.au and YouTube channel https://www.youtube.com/infomedialtd for more information.
About SimplePart: Founded in 2008 by Cole Getzler, a car enthusiast who devised a solution to find genuine restoration parts, SimplePart has evolved into a solutions platform that allows automakers and dealers to reach nearly nine million vehicle owners a month. SimplePart is a leader in the digital fixed-ops space. The team of approximately 70 supports parts catalogue authoring, client support, enterprise consulting, design, digital marketing, business analytics and development. The SimplePart website is available here: SimplePart | Home.
For further queries, please contact:
Tanya Thomas
Head of Investor Relations & Communications
O: +61 2 9454 1547
M: + 61 424 693 055
E: tthomas@infomedia.com.au
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Original Source: Infomedia to Acquire Auto E-Commerce Platform SimplePart
