Dealership software provider Vehlo has added Rapid Recon and Velocity Automotive to its portfolio.
Rapid Recon provides used-car reconditioning software that helps dealers streamline the process of getting secondhand vehicles from auction to a dealership lot’s front line, and ensures all the departments that touch the vehicle follow a process and communicate with each other. Dennis McGinn, a former Hewlett-Packard executive, founded Rapid Recon in 2010. More than 2,000 dealers use its software.
Velocity Automotive's software helps dealers provide information to used-car buyers, such as window stickers that show with what options the car was delivered. That information also helps dealers determine their bids at auctions. Velocity also has a suite of used-car reconditioning software aimed at streamlining sales and service processes. The company was founded five years ago by Hugh Hathcock.
"The addition of Rapid Recon and Velocity to our portfolio allows us to connect the service department to its best customer: the pre-owned department," Vehlo CEO Michelle Fischer said in a statement. "Rapid Recon adds the reconditioning solution that invented the software category, while Velocity Automotive gives us a digital merchandising solution that connects those reconditioning investments to the sales process."
Both McGinn and Hathcock will stay with their companies. McGinn will continue to lead Rapid Recon's day-to-day operations. Hathcock will transition to an advisory role with the combined companies and work with Vehlo's divisional leadership team. Velcocity CEO David Penney will continue to manage the company's daily operations.
Vehlo spokesman Gregory Arroyo said the deals have closed but would not disclose the terms. All of Vehlo's divisions will be at this week's NADA conference in Dallas, he said. Vehlo is based in Knoxville, Tenn.
A previous version of this story misspelled Dennis McGinn's name.