KKR's Internet Brands to Sell Autodata Unit to Thoma Bravo

(Bloomberg) -- KKR & Co.’s Internet Brands agreed to sell its Autodata Solutions Group to private equity firm Thoma Bravo.

Financial terms weren’t disclosed. The deal is valued at about $1 billion, according to a person familiar with the matter. The deal is expected to be completed within the coming weeks, the companies said in a statement on Tuesday.

“Over the last five years, we have worked with the Internet Brands and Autodata Solutions management teams to build a leading automotive software and market services platform,” Herald Chen and John Park of KKR said in the statement. “We are confident it will retain this positive trajectory and track record of innovation under Thoma Bravo’s ownership.”

Autodata Solutions, founded in 1990, provides software, technology and marketing solutions to the automotive industry. KKR acquired Internet Brands in 2014 and has bolstered the media and software company through acquisitions, including the purchase of WebMD Health Corp. in 2017. Internet Brands also owns legal and travel sites.

KKR will continue to own Internet Brands after the transaction.

“As technological innovation drives massive change within the automotive industry, we believe Autodata Solutions Group is well positioned to be at the forefront of that future,” said Scott Crabill, a managing partner at Thoma Bravo.

Following the deal, Autodata’s management team will remain and continue to operate from the firm’s headquarters in London, Ontario.

RBC Capital Markets was financial adviser to Internet Brands and Simpson Thacher provided legal advice, according to the statement. Kirkland & Ellis is legal adviser to Thoma Bravo. RBC and KKR Capital Markets LLC are providing financing for the transaction.

To contact the reporter on this story: Melissa Karsh in New York at mkarsh@bloomberg.net

To contact the editors responsible for this story: Margaret Collins at mcollins45@bloomberg.net, Michael Hytha, Alan Mirabella

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