Reynolds and Reynolds Co., Cox Automotive and CDK Global are all seeking or contemplating new acquisition deals in 2023 as they work to modernize their offerings. And they may have their pick of potential targets because of a tough fiscal environment for startups.
Leaders of the three biggest retail technology companies confirmed to Automotive News that they're looking to buy other companies or products or are at least open to opportunities should they arise. While none offered details, they'll likely target dealer management software technology that includes legal compliance, consumer data platforms, robotic process automation and new-vehicle inventory tools, said Steve Greenfield, CEO of venture capital firm Automotive Ventures.
"The three legacy DMS providers have the benefit of thousands of existing paying dealer customers and are thus ideally positioned to acquire 'tuck in' acquisitions to cross-sell into their installed dealer base," Greenfield told Automotive News via email.