KKR, Carlyle Lead The Race To Acquire Reynolds And Reynolds

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Reynolds and Reynolds, a business management software company that’s up for sale, will likely be acquired by either Carlyle Group LP (NASDAQ:CG) or KKR & Co. L.P. (NYSE:KKR) Reuters cites anonymous sources that the two private equity firms are the leaders in the negotiation. The sources spoke anonymously because the negotiations have not been officially announced.

KKR, Carlyle Lead The Race To Acquire Reynolds And Reynolds

Reynolds and Reynolds is reportedly trying to seal a $5 billion sale with one of the two firms, although a deal isn’t expected to be finalized until early next year. The company hired investment bank Qatalyst Partners to help it find a buyer. Carlyle Group LP (NASDAQ:CG) and KKR have reportedly offered between $4 billion and $5 billion, which is less than Reynolds and Reynolds wants. Reuters reported earlier this year that KKR & Co. L.P. (NYSE:KKR) was a possible buyer for the company through a leveraged buyout.

Reynolds and Reynolds offers a number of software tools for management at auto dealers, including website creation tools, marketing services, data archiving, and digital advertising. The company dates all the way back to 1866 when it was founded as a printer of standard business forms. In the 1920s the company began to focus its services on auto retailers.

Universal Computer Systems acquired the company in 2006 for $2.8 billion. Bob Brockman is chairman and CEO of the company. He led Universal Computer Systems before the two companies merged. The merger of UCS and Reynolds and Reynolds was also a leveraged buyout with numerous investors, including Goldman Sachs Capital Partners and Vista Equity Partners.

Spokespeople for KKR & Co. L.P. (NYSE:KKR), Carlyle Group LP (NASDAQ:CG), and Reynolds and Reynolds have declined to comment on the potential deal.

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