IDS agreed to acquire White Clarke Group, a provider of retail, fleet, wholesale and asset finance solutions for the automotive and equipment finance markets. The two companies will combine to create a multi-asset class secured finance technology company supporting banks, independents, OEM captives and specialty finance firms globally. Together, the combined company will serve more than 300 customers across North America, Europe and the Asia Pacific region and will be co-headquartered in Minneapolis and Milton Keynes in the UK.

“Global business has entered a new long-term investment cycle driven by the rapid evolution of technology,” David Hamilton, CEO of IDS, said. “Smart factories, connected-assets (IoT), green-energy and many other technology innovations will bring about exciting new economic growth opportunities, which will require access to capital from secured finance firms. With a comprehensive and flexible technology foundation, these finance providers will be able to support new funding models, accelerating the move to digital, servitization and mobility. Supporting this fast-changing market need is the motivation for bringing our two great companies together, creating an unmatched range of secured finance solutions and the ability to support customers globally.”

IDS and White Clarke Group together will provide a portfolio of products across multiple market segments, including:

• Automotive Finance (Retail, Fleet and Wholesale): CALMS is a full lifecycle system including point-of-sale, loan origination, loan servicing and floorplanning capabilities and serving eight of the top 10 auto manufacturers representing 25 brands.
• Equipment/Asset Finance: End-to-end platform for leasing and loan origination and portfolio management with more than $350 billion of net asset value running on the solution.
• Working Capital (Asset-Based Lending and Factoring): A solution providing the ability to manage working capital finance offerings with real-time credit monitoring and availability. Managing c.$50 billion in factoring volume annually.

“Our industry is being disrupted by a global shift in consumption,” Brendan Gleeson, group CEO of White Clarke Group, said. “Consumers and businesses want utility and outcomes, not ownership. This has created an opportunity for financing firms to tap into emerging technologies, including digital and AI, to create new business models, like subscription and car sharing. As these trends accelerate, these firms will need the support of a global technology vendor that can deliver innovation at scale. Combining our companies provides the ability to innovate at the pace of change while delivering exceptional value to our combined customer base.”

“We’re thrilled to support IDS in taking this transformational step,” A.J. Rohde, a senior partner at Thoma Bravo, said. “IDS and White Clarke Group have both invested in building industry-leading solutions which serve many of the world’s top financial services and automotive brands. The combination creates an exciting and truly unique proposition for the secured finance market with a world-class team and global scale.”

“It has been our privilege to partner with White Clarke Group and help it transition from a founder-led UK focused business to a global player with a more recurring revenue model,” Vivek Kumar, a partner at Five Arrows Principal Investments, said. “We are very excited about the combination of IDS and White Clarke Group and look forward to helping in the creation of value in the combined company over the next few years.”

IDS is acquiring White Clarke Group from Five Arrows Principal Investments, which originally invested in the business in 2016 and will remain a shareholder in the combined company.

The transaction is expected to close before the end of Q2/21. The financial terms of the deal were not disclosed.

Robert W. Baird & Co. and Shoosmiths advised Five Arrows Principal Investments. Kirkland Ellis advised IDS and Thoma Bravo.