Cliff Banks - The Banks Report

Dealership Compliance a Hot Space as KPA Acquires ComplyNet

October 23, 2023 — KPA, a compliance services provider, announced last week it is acquiring ComplyNet, a Columbus, OH-based firm providing end-to-end compliance software for automotive dealerships.

Phil Troy founded ComplyNet in 1994 in Chicago and sold it in 2018 to an investment group led by Alexis Jacobs, owner of Columbus Fair Auto Auction, and, at the time, a long time customer of ComplyNet. The investor group included Greg Levi and Adam Crowell.

The company’s solutions include Privacy and Safeguards (P&S), Environmental Health and Safety (EHS), and Sales F&I and Advertising, compliance software designed for dealers in automotive, RV, power sports, marine and other adjacent automotive segments.

Providence Equity Partners acquired a majority of KPA in 2018 from CIVC Partners, which continues to maintain a minority position. KPA compliance software and services enabling organizations to stay safe and compliant.

Compliance has become a driving topic in automotive retail in recent years. Government agencies have stepped up their scrutiny of dealerships and other hazardous industries while adding numerous regulations, making compliance on several fronts a challenge for businesses.

Since its start in 1986, KPA has become a leader in the compliance industry developing an end-to-end, award-winning online compliance training catalog, along with numerous other solutions and employs more than 120 expert risk management consultants throughout the US.

Providence is the private equity firm that acquired 25% of Cox Enterprises’ AutoTrader in 2010, financing a buying spree over four years, in which AutoTrader acquired Haystak Digital Marketing, HomeNet Automotive, Kelley Blue Book, vAuto and VinSolutions.

Cox reacquired the 25% stake in 2014.

TD Cowen served as the exclusive financial advisor to KPA in this transaction. Presidio Technology Partners acted as financial advisor to ComplyNet in the transaction.

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