OEConnection LLC (OEC), an automotive parts technology provider for OEM distribution networks, facilitating an estimated $20 billion in annual replacement parts trade, announced that Providence Equity Partners will acquire a majority equity stake in the company.
Providence is a global private equity firm with $45 billion in assets under management. General Motors (GM) and Ford will each maintain a 15 percent minority stake in the company, which was established in 2000.
“Providence has a thorough understanding of OEC’s business model and market opportunities as well as a proven track record of successful partnerships and investments in similar companies,” said Chuck Rotuno, president and CEO, OEConnection. “We look forward to leveraging their resources and expertise to expand our global client base, and make it easier for our customers everywhere to grow their parts and service business.”
OEC is a provider of end-to-end cloud-based technology solutions that facilitate the efficient location, sale, distribution and dynamic pricing of automotive and heavy-duty trucking OE parts. The company serves more than 20 OEMs worldwide and 100,000 dealership and repair customers.
“Providence Equity Partners’ expertise in technology services businesses will help OEC significantly expand its product offerings and parts delivery globally,” said Frederiek Toney, president, Global Ford Customer Service Division. “Doing so will allow Ford dealers and independent service shops to serve customers more effectively and drive increased satisfaction.”
“General Motors views this change as a great opportunity to expand the product and service offerings to our GM Dealers through the investments of Providence in OEC. Through this new partnership arrangement GM will continue to have an active role in OEC,” said Tim Turvey, global vice president, customer care and aftersales.
“OEC is a unique, high growth technology solutions company led by an outstanding management team and backed by two world-class automotive companies,” said Davis Noell, managing director at Providence Equity Partners. “We are excited to partner with management, Ford and GM to help accelerate OEC’s growth strategy, both organically and through acquisition, and add lasting value to the company.”
The deal is subject to customary conditions including receipt of required regulatory approval and is expected to close by the end of the second quarter 2016.
William Blair and Jones Day acted as exclusive advisers to OEC in this transaction. Debevoise & Plimpton LLP served as legal counsel to Providence.
