A long time ago in a land far away, I used to know the folks at UCS. Congratulations to Bob Brockman and the team at UCS for the purchase of Reynolds and Reynolds Dealer Systems. This weeks Houston Business Journal has a write up but it isn’t online yet. Resources:
- R&R press release is here
- Letter from R&R CEO here
- Letter from UCS stating R&R CEO will be NewCo CEO
Reading between the lines it is an awesome exit plan. Execs at UCS get the cash. R&R gets to go private and avoid the huge expense of SARBOX. R&R CEO stays CEO. Keeps the R&R Brand. The shareholders get a fair price. The UCS employees have got to be a bit “nervous” but stuff happens. Fin O’Neil, R&R’s CEO gains another 5% market share in the US. Everyone rides into the sunset.
Anyone else think it’s time to take another look at the expense of SARBOX and why the only tech exit strategy these days is to be bought? Can we please bring back innovation even if it means dorky IPOs?
The company also announced that Fin O’Neill, Reynolds’ president and CEO, will be Vice Chairman, Office of the CEO, for the merged company. He will be responsible for helping lead the integration of the two companies and helping ensure that customer voices are heard and reflected in Reynolds’ policies and procedures, as well as in products and services.
Robert Brockman will serve as Chairman, Office of the CEO, for the new company.