On Tuesday, May 17, 2016 Tony Aquila, CEO of Solera Holdings Inc., the parent company of Audatex Canada, sat down for a conversation with Bloomberg’s Alix Steele at the Goldman Sachs Leveraged Finance Conference in Rancho Palos Verdes, California. Mr. Aquila offered some thoughtful commentary on the advantages of leveraged financing while painting an intriguing picture of what lies ahead for innovative companies like Solera.
In his view, “the app war is coming,” and private equity investors understand the agility companies need in order to shift to the content-rich environment that this implies. Solera’s aspiration is to own 80% of the data and software associated with the 52-54 transactions that a car owner will make over the course of ownership. In pursuit of this, Mr. Aquila suggested that Solera does not rely on an M&A strategy but instead an I&A, “invent and then acquire,” strategy.
Mr. Aquila’s perspectives are particularly noteworthy in the context of Vista Equity Partners recent move to take Solera private. This $6.5 billion USD deal sets the stage for the delivery of innovative new products to Solera’s clients and to enable the digital lifestyles of their customers.