Kenosha-based Snap-on Inc. has acquired Dealer-FX Group Inc. in a $200 million cash deal, the company announced Monday.
Ontario-based Dealer-FX develops service operations software for automotive original equipment manufacturer customers and their dealers. The company’s software helps improve dealership productivity and enhances the service experience for vehicle owners.
Dealer-FX had roughly $37 million in 2020 fiscal year revenue. It will become part or Snap-On’s repair systems and information group. The deal is not expected to have a meaningful impact on Snap-On’s current fiscal year.
“Dealer-FX extends our strategic visibility into new technologies and platforms as they enter the vehicle parc, expands the reach of our shop management software, and enhances our expertise with respect to dealership service and repair operations,” said Nick Pinchuk, chairman and chief executive officer of Snap-On.
“The service department is a key driver of automotive dealership success, and given the increasing complexity of vehicle repair and the importance of the customer experience, we believe this acquisition, with its end-to-end dealership software solutions, will further Snap-on’s progress along one of its decisive and coherent runways for growth, expanding with repair shop owners and managers,” Pinchuk added.
California-based private equity firm HGGC sold Dealer-FX to Snap-On.
“Our partnership with HGGC proved beneficial for our growth prospects, employee culture and technology infrastructure,” said Dealer-FX CEO Bill Lucchini. “I’d like to thank Steve (Young), Dan (Stanko) and the rest of the HGGC team for their support, particularly during a pandemic, in accelerating Dealer-FX’s expansion and enhancing our positioning for long-term success with Snap-on.”
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