Exclusive-Genstar explores $5 billion sale of automotive software maker OEConnection, sources say
(Reuters) -Genstar Capital is exploring a sale of OEConnection, which it aims to value the automotive software provider also backed by Ford and General Motors (NYSE:GM) at as much as $5 billion, including debt, people familiar with the matter said.
The private equity firm has tapped investment bankers at Evercore to advise on the OEConnection sale process, which is expected to launch later this year, said the sources, who requested anonymity to speak about matters that are not public.
Genstar declined to comment, while Evercore and OEConnection were not immediately available to comment.
Fairlawn, Ohio-based OEConnection, established in 2000 through a partnership involving original equipment manufacturers (OEMs) including Ford and General Motors, provides systems that help facilitate the sale and distribution of original replacement parts involving suppliers, dealers, and repair shops.
OEConnection generates $200 million in earnings before interest, taxes, depreciation, and amortization (EBITDA), and $400 million in annual revenue, the sources said, adding that the business would likely be valued at more than 20x EBITDA, with estimates ranging between $4 billion and $5 billion.
Genstar acquired OEConnection from fellow buyout firm Providence Equity in 2019. As part of that deal, automakers Ford and General Motors retained minority stakes in the company.
Don't miss out on the next big opportunity! Stay ahead of the curve with ProPicks – 6 model portfolios fueled by AI stock picks with a stellar performance this year..
In 2024 alone, ProPicks' AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.
With portfolios tailored for Dow stocks, S&P stocks, Tech Stocks, and Mid Cap stocks, you can explore various wealth-building strategies.
So if GM is on your watchlist, it could be very wise to know whether or not it made the ProPicks lists.
