Solera (SLH -0.4%) purchases a minimum 50% equity interest in Service Repair Solutions from P-E firm Welsh, Carson, Anderson & Stowe for $289M with a call option to buy the firm's remaining shares in the JV (and a reciprocal put option held by the P-E firm). The transaction is expected to close in Q2 of FY2014.
The move continues a trend of vertically-oriented integration for the insurance software provider. SRS's diagnostic and repair database is used by ~50K repair shops in the U.S. and Canada.
Management expects the transaction to generate revenue of $80M-$82M in FY 2014 and EPS of $0.20-$0.22.