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ADN buys one-third stake in DCS

Auto Data Network, a specialist automotive retail software house quoted on NASDAQ, has invested £6m a 33% share in DCS Automotive, Europe's largest DMS provider. ADN has also acquired the right to purchase the remaining two-thirds equity in DCS Automotive subject to financial performance criteria.

The deal marks Auto Data Network's entrance into the DMS segment. Over the last twelve months, it has acquired other companies that have “added depth” to its 'DMS Plus' offering. DCS is the DMS market leader in France, Germany and Switzerland has over 11,000 clients – in the same league as US market leaders Reynolds and Reynolds and ADP automotive. ADN expects revenues from DCS' existing business are projected to reach $60 million this year.

When ADN exercises its right to purchase the remaining two thirds of DCS Automotive, Stephen Yapp, CEO of DCS Automotive's parent DCS Group plc, will join ADN's board. Yapp said, “Partnering with ADN represents a huge opportunity for us, not only by giving us the financial background for growth, but also in securing our European market-leading position, enhances our product offering and therefore increases the market-desirability of our business."

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