Protective Asset Protection, one of the leading finance-and-insurance product providers in the U.S., said last week it will acquire competitor Revolos and its family of companies. It would not disclose the cost of the acquisition.
Protective President Scott Karchunas told Automotive News that discussions with the Atlanta-based F&I company began in late 2019. The coronavirus pandemic disrupted initial acquisition plans, as well as the operations of both companies, he said.
"To ensure we continued delivering on the needs of our customers, discussions were paused as both Revolos and Protective swiftly made adjustments to convert the vast majority of employees to remote working," Karchunas said in an email. Once both companies acclimated to virus conditions, Protective restarted acquisition talks, he said.
Revolos offers F&I products for the automotive industry as well as the boating and motorsports industries, among others. The company has sold 4.6 million vehicle service contracts and has paid out $1.1 billion in claims to more than 1.8 million consumers, according to a statement.
The purchase, which will be the company's 58th acquisition, is expected to close in the first quarter of 2021. It is also the fifth acquisition since Protective became part of Japanese insurance giant Dai-ichi Holdings in 2015. Both companies will operate independently until then, though integration plans are forthcoming.
"The first and most important focus in ensuring both Revolos and Protective customers continue to receive the service they have come to expect from two great organizations," Karchunas said. "One of the strengths Revolos brings is the depth of talent throughout the organization."