Universal will let Reynolds be Reynolds; Shareholders get a tiny premium on share price.(Reynolds and Reynolds Co contracts with Universal Computer Systems Inc)

Automotive News, August, 2006 by Kisiel, Ralph

Byline: Ralph Kisiel

The $2.8 billion deal that Reynolds and Reynolds Co. and Universal Computer Systems Inc. struck last week is not quite the merger that the two vendors of dealer management systems initially led auto dealers to believe.

Reynolds, the No. 2 marketer of dealer management systems, would continue to market its system under its brand. But it would become a subsidiary of Universal Computer, a private company that is a distant No. 3 in the marketplace.

If Reynolds shareholders approve the deal, the company also would go private. Fin O'Neill would continue as Reynolds CEO. He stands to make $9.7 million from the proposed agreement.

Reynolds would retain its Dayton, Ohio, headquarters. About 10,000 dealerships in the...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.