Evolution Funding Group has completed the acquisition of automotive software and digital services provider Click Dealer.
The motor finance broker and technology provider said the transaction – completed for an undisclosed sum – marks “a significant move to broaden Evolution’s digital and SaaS proposition”.
It follows an acceleration in investment for Evolution since it received investment from mid-market private equity firm LDC in 2019 and takes Evolution a step further towards its next milestone of brokering more than £1bn motor finance in a year.
Formed in 1999, automotive software business Click Dealer is a provider of dealer website hosting, proprietary dealer management systems and associated digital solutions for independent motor retailers which currently counts over 1,550 dealers UK car dealers as its clients.
The company employs a team of 63 at their head office in Stoke-on-Trent and will continue to operate under the leadership of Gerry Moxham, Ollie Moxham and Pippa Rawlinson – operating as a separate legal entity within the Evolution Funding Group.
UHY Hacker Young partner David Kendrick acted as the corporate finance advisor for Click Dealer in the acquisition by Evolution.
Lee Streets, chief executive at Evolution, said: “We are acquiring a highly-regarded data-driven, end-to-end, automotive software provider. They have a fantastic reputation in the market and there are many similarities with our own company culture – it’s a great fit.
“A key part of Evolution’s vision is to lead change and digital innovation in motor finance. The acquisition of Click, with its market-leading platform, will help accelerate our ability to deliver this, whilst also supporting our objective of brokering £1 billion of motor finance in the UK.
Evolution claims to have developed best-in-class online finance customer journeys with the help of credit pre-screening, automated lender selection, finance self-serve and checkout automation technologies all available to remote customers.
The technology helped it to embrace an online finance boom during the UK's COVID-19 lockdowns.
In October last year the business gained recognition for its service with two awards at the 6th annual Motor Finance European Conference and Awards 2020, including Intermediary of the Year, for the fourth year.
Streets said that the business was keen to maintain Click Dealer’s agnostic position on finance, offering “true flexibility and choice for the retailer and the customer”.
He added: “In addition, our aim is to make innovative features and functions available via Click’s platform that deliver best-in-class digital finance journeys and increase point of sale finance sales for dealers.
“We will work quickly to offer Click retailers’ access to Evolution’s technology. The prospect of creating frictionless online finance journeys for consumers on the Click platform is incredibly exciting for both businesses.”
Moxham said: “We are delighted to be embarking on the next stage of Click’s journey as part of the well respected and highly successful Evolution Funding Group.
“This strategic decision to integrate with Evolution puts us in a great position to support dealers now, and in the future, as a true performance partner. We look forward to working with the team at Evolution in delivering new innovations and integrated digital and financial solutions for dealerships across the UK.”
LDC’s Lawrence Dean said: “This is a significant milestone for Evolution as the business looks to enhance its market position and technology capabilities. We will continue to work closely with the management team to identify other complementary businesses that support the management team’s growth strategy.”