DealerSocket, Auto/Mate Parent Solera Files for IPO

DealerSocket, Auto/Mate Parent Solera Files for IPO

June 30, 2024 — As expected, automotive software vendor Solera filed publicly Friday for an initial public offering with the US Securities and Exchange Commission.

The Vista Equity-owned company filed confidentially in May indicating a likely IPO later this summer. Friday’s paperwork did not disclose the price or number of shares Vista plans to sell as part of the IPO.

According to Friday’s filing, Solera posted a net loss of $486.3 million on $2.44 billion in revenue (fiscal year April 2023 – March 2024), up from a net loss of $380.6 million on $2.36 million in revenue the year before.

The filing also disclosed Solera will use the proceeds of the IPO to pay a portion of more than $8.4 billion in debt spread across four loans.

Although Vista has not said how much it hopes to raise, estimates are an IPO in the range of $1 billion to $1.5 billion, which would likely value the company at more than $10 billion. The filing indicates Vista Equity will be the controlling shareholder in the new public company.

Vista Equity, along with investors Koch Industries and a division of Goldman Sachs, which acquired Solera in 2016 for $6.5 billion, attempted to go public in 2021 via a $15 billion SPAC deal that would have merged the company with blank-check company Apollo Growth Capital. Vista and Apollo tabled the plan as public tech stocks began faltering in late spring 2021.

Later that summer, Solera acquired two other Vista-owned firms, automotive retail CRM DealerSocket (including dealer management service provider Auto/Mate) and fleet management firm Omnitracs. Today, the company has 280,000 clients in the vehicle claims, vehicle repair, and fleet solutions markets.

Underwriters include Goldman Sachs & Co., Morgan Stanley, BofA Securities, Jeffries, Citigroup, RBC Capital Markets, Baird, BMO Capital Markets, Piper Sandler Rothschild & Co., Stifel, William Blair, Wolfe/Nomura Alliance, KKR, Macquarie Capital, and Needham & Co.

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