UCS is offering $40 (£21) per share in cash for Reynolds’ shares. The company will also take on Reynolds’ debt. Reynolds’ shareholders still have to vote on the deal, which is expected to happen in the fourth quarter of this year.
This is the latest in an acquisition trail which saw Reynolds and Reynolds acquire the DCS Group, another automotive software company, for £27.1m in June.
Despite UCS owning Reynolds and Reynolds, the combined company will be named the Reynolds and Reynolds Co, with products and services of both companies marketed under the Reynolds brand.
Fin O’Neil, CEO of Reynolds and Reynolds, said it was a ‘great day’ for the company.
“The possibilities and opportunities of this merger are truly exciting. Immediately we strengthen our customer base and extend our reach in the marketplace. We expand our range of products and services so we are better equipped to meet customer needs,” he said.