Solera, supported by Vista Equity, seeks to go public on the US stock market with a valuation of up to $13 billion
Automotive data and software company Solera plans to go public on the U.S. stock market for the first time (IPO), seeking an overall valuation of about $10 billion to $13 billion. Solera is a global software-as-a-service provider that offers vehicle lifecycle data and automotive software services to core customer groups such as insurance companies and car dealers. Sources familiar with the matter said Solera may submit application documents as early as this week and promote the IPO transaction to potential institutional investors in mid-July. The IPO could raise up to $1.5 billion, an increase from the expected financing scale reported in April. Solera's IPO application has been submitted confidentially, and details such as the specific listing time may still change
According to the financial news app Zhitong Finance, as reported by the media citing informed sources, the U.S. private equity giant Vista Equity Partners-backed automotive data and software services provider Solera plans to seek an overall valuation of about $10 billion to $13 billion in its initial public offering (IPO) on the U.S. stock market. With the possibility of global electric vehicles entering a phase of mass scrappage, this massive valuation demonstrates Solera's strong influence in the automotive data and software services field and the financial market's optimism about its future growth potential.
Informed sources stated that this technology company, which focuses on analyzing vehicle lifecycle data for core clients such as insurance companies and car dealerships, may release its application documents as early as this week to publicly apply for listing on the U.S. stock market. The company may start promoting this IPO transaction to potential institutional investors as early as mid-July.
Sources indicated that Solera, headquartered in Westlake, Texas, may seek financing of up to $1.5 billion in this U.S. stock IPO issuance, higher than the previously reported financing size of over $1 billion in April this year.
According to a statement, Solera has secretly submitted its IPO application. However, some details, including the specific listing time, may still change, as indicated by informed sources. A representative from Vista declined to comment. A Solera spokesperson did not immediately respond to a request for comment from reporters.
As the company submits its IPO application, the number of IPOs in the U.S. stock market continues to rebound after several relatively quiet years. In the first six months of 2024, companies newly listed on the U.S. stock market raised approximately $20 billion in total through IPOs on major U.S. stock exchanges. Data compiled by Bloomberg shows that this is the best IPO start since 2021.
Public information shows that Solera is a global software-as-a-service (SaaS) provider covering vehicle lifecycle and fleet management integrated services. The company helps clients with vehicle claims, repairs, management, and fleet management. Data shows that Solera serves over 300,000 customers in total.
More detailed information shows that Solera is a global leader in data and software solutions for the automotive and insurance industries, established in 2005, providing a range of products and services to help companies manage vehicle claims, repairs, and digital identity verification. As early as 2016, Vista Equity Partners recognized Solera's enormous potential and acquired Solera for $6.5 billion, making it one of Vista's most significant investments. Solera's solutions aim to enhance the efficiency and accuracy of the automotive ecosystem, providing services to global customers through its advanced data and technology platform Vista Equity Partners is a private equity leader based in the United States, with a strong focus on investments in software, data, and technology-driven businesses. Founded by Robert F. Smith in 2000, the company currently manages assets exceeding $100 billion. Vista Equity Partners is renowned for its unique investment strategy, concentrating on enterprise software companies to achieve investment returns through operational improvements and strategic growth. Its investment portfolio not only includes companies in the software and data analytics industry, but also spans across various sectors, with over 600 completed private equity transactions.
In 2016, Vista, along with a group of investors including a division of Koch Industries Inc., privatized Solera in a deal that valued the company at approximately $6.5 billion at the time, according to a statement at that time.
Sources familiar with the matter revealed that a large lineup of investment banks is assisting Solera in its U.S. stock market IPO. The company is currently working with top Wall Street investment banks such as Goldman Sachs, Morgan Stanley, Bank of America, and J.P. Morgan Chase to pursue a proposed IPO valuation exceeding $10 billion