Drew Technologies, Inc., an Opus IVS division company, acquired US-based AutoEnginuity, LLC for a purchase price of approximately $20 million on a cash-free and debt-free basis.
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 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 and all staff are expected to continue working under the Opus ownership.
In 2019, AutoEnginuity had revenues of approximately $4 million with earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted for non-recurring items of approximately $2.3 million. In 2020, the AutoEnginuity acquisition is estimated to increase Opus’ EBITA by greater than 5 percent.
This acquisition brings the total Opus IVS offices to seven, with US 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 line-up 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”.
“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 US collision scanning industry”, said Brian Herron, President of the Opus IVS division.
This article courtesy of Russell Thrall III, publisher CollisionWeek. Check out their website at: www.collisionweek.com.