Snap-on Incorporated announced that it has acquired Dealer-FX Group, Inc. based in Markham, Ontario, for the equivalent of approximately $250 million CAD in cash.
Dealer‑FX is a leading developer, marketer, and provider of service operations software solutions for automotive original equipment manufacturer customers and their dealers. Dealer-FX specializes in software as a service (SaaS) management systems, communications platforms and extensive data integrations, and offers a digitized solution that increases dealership productivity and enhances the vehicle owners’ service experience.
This acquisition complements and expands on Snap-on’s existing OEM and dealership business in its Repair Systems & Information Group (RS&I) that provides electronic parts catalogs, essential tool and diagnostics programs, and custom analytics to OEMs and more than 50,000 dealerships, globally.
“Dealer-FX extends our strategic visibility into new technologies and platforms as they enter the vehicle parc, expands the reach of our shop management software, and enhances our expertise with respect to dealership service and repair operations. We believe Dealer-FX will magnify our current capabilities across the Repair Systems & Information Group,” said Nick Pinchuk, Snap-on chairman and chief executive officer.
“The service department is a key driver of automotive dealership success, and given the increasing complexity of vehicle repair and the importance of the customer experience, we believe this acquisition, with its end-to-end dealership software solutions, will further Snap-on’s progress along one of its decisive and coherent runways for growth, expanding with repair shop owners and managers.
“Over the past few years, Dealer-FX has invested in its technology platform, significantly enhancing its value-proposition to dealership owners and managers.
“Coupled with the know-how and capabilities of RS&I, along with the financial strength of Snap-on, we believe this addition will fortify our already strong position in vehicle repair and will upwardly increment our growth expectations in this important market segment. We welcome Dealer-FX to the Snap-on family.”
With 2020 fiscal year revenues of approximately $45 million CAD, Dealer-FX will be reported within the company’s RS&I segment; the transaction is not expected to have a meaningful effect on Snap-on’s earnings per share during 2021.