Auto insurance software firm Solera Holdings Inc announced that it would acquire equity interests in Service Repair Solutions Inc (SRS) under a joint venture agreement. SRS is a database and workflow solutions provider for the maintenance and repair industry. The firm is backed by investment company Welsh Carson Anderson & Stowe.
The terms of the deal stipulated that Solera would be buying at least 50% of the shares from an affiliate unit of Welsh Carson for USD 289 million. Solera would retain the right to call the joint venture shares of Welsh Carson while Welsh Carson would also have the right to put its shares to the auto insurance software company. Solera would operate the joint venture. As part of the agreement, Solera Founder, Chairman and Chief Executive Officer Tony Aquila would be the Chairman of the joint venture company.
Aquila said, "We are thrilled to be working with Welsh Carson and SRS's management team, as we believe we can help them build upon the double-digit top-line growth that SRS has enjoyed over the last five years."
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