Reynolds & Reynolds Buyout

Holders will get $40 a share.
Publish date:

Closely held Universal Computer Systems agreed to buy

Reynolds & Reynolds


for $40 per share in cash, or $2.58 billion.

The transaction is subject to approval by Reynolds shareholders and regulatory clearances. Reynolds' board members Richard H. Grant III and Fin O'Neill, president and CEO, have agreed to vote their shares in favor of the transaction. Reynolds shares rose 6% in early trading on the news to $37.15.

The combined company will continue to be named Reynolds & Reynolds, and the UCS brand will be discontinued. Reynolds will continue to have headquarters and principal operations in Dayton, Ohio.

"Today is a great day for Reynolds," said O'Neill. "We're creating the world's pre-eminent dealer services provider by leveraging the great product and strong technical capabilities of UCS while continuing to build on Reynolds' relentless focus on serving our customers."

The transaction is being financed by a combination of equity primarily from a group of investors led by the Goldman Sachs Capital Partners, Vista Equity Partners, and others, with debt provided by Deutsche Bank and Credit Suisse.