IDS, a leader in enterprise mission-critical solutions for secured finance, has agreed to acquire White Clarke Group, a provider of retail, fleet, wholesale and asset finance solutions for the automotive and equipment finance markets. The two companies combine to create a multi-asset class secured finance technology powerhouse supporting banks, independents, OEM captives and specialty finance firms globally.

Together, the combined company will serve more than 300 customers across North America, Europe and Asia Pacific and will be co-headquartered in Minneapolis, MN, and Milton Keynes, UK.

“Global business has entered a new long-term investment cycle driven by the rapid evolution of technology,” said David Hamilton, CEO of IDS. “Smart factories, connected-assets (IoT), green-energy and many other technology innovations will bring about exciting new economic growth opportunities which will require access to capital from secured finance firms. With a comprehensive and flexible technology foundation, these finance providers will be able to support new funding models accelerating the move to digital, servitization and mobility. Supporting this fast-changing market need is the motivation for bringing our two great companies together creating an unmatched range of secured finance solutions and the ability to support customers globally.”

IDS and White Clarke Group together provide a comprehensive portfolio of products across multiple market segments including:

• Automotive Finance (Retail, Fleet and Wholesale) – CALMS is a full lifecycle system including point-of-sale, loan origination, loan servicing and floorplanning capabilities serving 8 of the top 10 auto manufacturers representing 25 brands.
• Equipment / Asset Finance – end-to-end platform for leasing and loan origination and portfolio management with more than $350 billion of net asset value running on the solution.
• Working Capital – (Asset-based lending and Factoring) – a comprehensive solution providing the ability to manage flexible working capital finance offerings with real-time credit monitoring and availability. Managing $39.7 billion in factoring volume annually.

“Our industry is being disrupted by a global shift in consumption,” said Brendan Gleeson, Group CEO of White Clarke Group. “Consumers and businesses want utility and outcomes, not ownership. This has created an opportunity for financing firms to tap into emerging technologies including digital and AI to create new business models like subscription and car sharing. As these trends accelerate, these firms will need the support of a global technology vendor that can deliver innovation at scale. Combining our companies provides the ability to innovate at the pace of change while delivering exceptional value to our combined customer base.”
 
“We’re thrilled to support IDS in taking this transformational step,” said A.J. Rohde, a Senior Partner at Thoma Bravo, a private-equity firm. “IDS and White Clarke Group have both invested in building industry-leading solutions which serve many of the world’s top financial services and automotive brands. The combination creates an exciting and truly unique proposition for the secured finance market, with a world-class team and global scale.”

“It has been our privilege to partner with White Clarke Group and help it transition from a founder-led UK focused business to a global player with a more recurring revenue model. We are very excited about the combination of IDS and White Clarke Group, and look forward to helping in the creation of value in the combined company over the next few years,” remarked Vivek Kumar, Partner at Five Arrows Principal Investments.

White Clarke Group was established in 1992 and has built a strong track record in providing specialized technology and software solutions to the automotive and asset finance markets. The company’s CALMS (Customer Acquisition & Lifecycle Management System) product range supports the complete lifecycle of auto and asset finance, leasing, and loan origination from point-of-sale through credit approval, contract management and customer support. The company has offices in the U.K., U.S., Canada, Australia, Austria, Germany, India and China.

IDS is acquiring White Clarke Group from Five Arrows Principal Investments, which originally invested in the business in 2016 and will remain a shareholder in the combined company.

The transaction is expected to close before the end of Q2 2021. For more details, visit here. The financial terms of the deal have not been disclosed.

Five Arrows was advised by Robert W. Baird & Co. and Shoosmiths LLP. IDS and Thoma Bravo were advised by Kirkland & Ellis LLP.