ADP Dealers Services, one of the two largest dealership technology vendors in the United States, has expanded its global footprint by purchasing Kerridge Computer Co., of England, for about $300 million.
Before this deal, ADP did business in 14 countries in North America and Europe. Now the technology and services vendor will do business in 41 countries on four continents, says Kevin Henahan, ADP's senior vice president of marketing.
"This is an international expansion, a much broader strategy for us," he says. Kerridge has a strong presence in Europe, he says.
Kerridge has annual revenues of about $150 million. It is the largest dealer management system provider in the United Kingdom, where ADP had only a small presence.
Kerridge is a privately owned company, founded in 1976. Its headquarters is in Hungerford, in southeastern England.
"This gives us a much broader international footprint," Henahan says. "We can provide global solutions to automobile dealer groups and OEMs who are working on a much more international scale."
Outside the United States and Canada, all Mercedes-Benz dealerships use the Kerridge system, Henahan adds.
Kerridge has 1,300 employees, more than 2,000 customers and 150,000 users. ADP will continue to support dealers using Kerridge's Autoline computer system. Henahan expects some software sharing between the Kerridge system and ADP's w.e.b.Suite2005 system.
ADP Dealer Services is in Hoffman Estates, Ill. Its chief rival in the United States is the Reynolds and Reynolds Co. In 2003, Reynolds acquired Incadea AG, of Raubling, Germany. That move gave the Dayton, Ohio, technology vendor a small but immediate foothold in European dealerships.
Together, ADP and Reynolds hold about 80 percent of business in the United States.