- Drew Technologies announced it has acquired AutoEnginuity for a price of about $20 million (approximately SEK 187 million) on a cash-free and debt-free basis
Drew Technologies, an Opus IVS division company, announced it has acquired AutoEnginuity for a price of about $20 million (approximately SEK 187 million) on a cash-free and debt-free basis. And all of the conditions for completion of the acquisition of AutoEnginuity have been met.
Launched in 2003, AutoEnginuity is based out of Mesa, Arizona and 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.
As part of the deal, 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. And additional amounts may be paid over the next 5 years depending on the performance of the AutoEnginuity business.
Through the acquisition, AutoEnginuity becomes a subsidiary of Drew Tech managed under the Opus IVS division. And AutoEnginuity management signed multi-year employment agreements and all staff is expected to continue working under the Opus ownership.
AutoEnginuity is considered a leader in advanced aftermarket vehicle diagnostics with coverage for 56 vehicle brands, including all important U.S., European, and Asian brands. And their broad coverage and diagnostic depth represent an interesting growth potential for Opus IVS.
“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 Opus Group CEO Lothar Geilen. “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.
In 2019, AutoEnginuity had revenues of approximately $4 million (approximately SEK 37 million) with EBITDA (adjusted for non-recurring items) of approximately $2.3 million (approximately SEK 22 million). This year, 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.
“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,” added Brian Herron, President of the Opus IVS division.
This acquisition brings the total Opus IVS offices to 7 with U.S. locations in New York, Michigan, California, North Carolina, Arizona, the UK, and Australia.
This announcement does not change the board’s statement with regards to the public offer from Ograi/Searchlight as announced on December 20, 2019.