William Blair & Company Initiates Coverage of Solera Holdings, Inc. With Outperform Rating

Business Wire, Oct 15, 2007

CHICAGO -- William Blair & Company initiated research coverage of Solera Holdings, Inc. (NYSE: SLH) ($19.09), the leading global provider of software and services for auto insurance claims, with an Outperform rating and company profile of Established Growth.

Analyst Franco Turrinelli estimated that the company would generate adjusted EBITDA of $155.7 million in fiscal 2008 and $169.7 million in fiscal 2009.

"The company's particular investment appeal is its international presence, which gives it access to markets that are growing both because of growth in vehicles and the uptake (voluntary or mandated) of insurance, and because of the generally limited use of automotive claims processing solutions by insurance companies in these international markets, " Turrinelli said. "As a result, instead of being limited to the low-single-digit top-line growth opportunity that we believe is afforded by the U.S. market, we believe Solera can generate high-single-digit to low-double-digit top-line growth, with good opportunity to expand margins as the company achieves scale and leverages its operating and development costs in the international markets."

"Solera has a mix of transaction and subscription-related revenue that is highly predictable, even where it is not contractually recurring," Turrinelli added. "The company's business also has limited sensitivity to macroeconomic weakness. Margin expansion should be a consistent theme, as the company will be able to improve efficiency of operations in established markets, and accrue scale--and hence leverage fixed costs--in emerging markets."

William Blair & Company, L.L.C. has received compensation for investment banking services from the company within the past 12 months, or expects to receive or intends to seek compensation for investment banking services in the next 3 months.

William Blair & Company, L.L.C. was a manager or co-manager of a public offering of equity securities within the prior 12 months.

William Blair & Company, L.L.C. (www.williamblair.com) is a Chicago-based investment firm offering investment banking, asset management, equity research, institutional and private brokerage, and private capital to individual, institutional, and issuing clients. Since 1935, we have been committed to helping clients achieve their financial objectives.

For important disclosures and information regarding the firm's rating system, valuation methods and potential conflicts of interest, please visit: http://www.williamblair.com/Pages/news_story_dept.asp?uid=1278&depID=4

Additional information is available upon request.