A San Francisco investment firm has been buying Reynolds and Reynolds Co. stock steadily and now is its largest shareholder.
So far, ValueAct Capital Partners has invested nearly $170 million in Reynolds.
Reynolds is one of the two largest vendors of dealership management systems -- the computer systems that dealerships use to run every aspect of their daily operations. The other vendor is ADP Dealer Services of Hoffman Estates, Ill., a division of ADP Inc.
ValueAct's stake in Reynolds has reached nearly 10 percent, or 6,169,100 shares, according to documents filed with the U.S. Securities and Exchange Commission.
Reynolds CEO Finbarr O'Neill has little to say about ValueAct.
"We have no comment on the decisions of any of our shareholders to buy shares," O'Neill told Automotive News. "I won't go beyond that."
ValueAct will not try to put someone on the Reynolds board of directors, Kelly Barlow, a ValueAct partner, said in an interview with Automotive News.
ValueAct is "incredibly happy" with O'Neill and his team, Barlow says.