Vista Equity Seeks to Tap Banks for Solera IPO, Sources Say

Reuters | March 13, 2024

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By Echo Wang

(Reuters) -Private equity firm Vista Equity Partners is seeking to hire investment banks for a U.S. initial public offering of Solera, a provider of software to the automotive and insurance industries, people familiar with the matter said on Wednesday.

Vista, which acquired Solera for $6.5 billion in 2016, is interviewing banks as it seeks to hire IPO underwriters, the sources said, requesting anonymity because the matter is confidential.

The listing could happen as soon as the end of 2024, depending on market conditions, the sources said. Solera has not finalized how much it plans to raise and the valuation it will seek for the IPO, the sources added.

Vista declined to comment. Solera did not immediately respond to a request for comment.

Westlake, Texas-based Solera is a software provider for the automotive and insurance industries with customers in more than 100 countries. Solera’s offerings, which include fleet management software, also help manage tasks like collision claims, registration of vehicle titles, and vehicle repairs, according to its website.

Solera also has an auto finance unit, which provides U.S. customers loans for buying cars.

Vista’s latest plans for Solera come after an earlier attempt to take the company public through a deal with a special purpose acquisition company in 2021 proved unsuccessful.

The U.S. IPO market has yet to recover from two years of subdued activity, even as several high-profile names, including social media platform Reddit and cybersecurity software startup Rubrik, are preparing to go public in the coming weeks.

(Reporting by Echo Wang in New YorkEditing by Greg Roumeliotis and Lisa Shumaker)