Montagu Private Equity sells CAP Automotive in £288m deal with US firm

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MONTAGU PRIVATE Equity has sold automotive intelligence company CAP Automotive in a deal worth almost £300m, two years after it bought the firm for £170m.

CAP provides vehicle valuation, data and business services across the motor industry.

US-based Solera Holdings purchased the UK firm for £288m. The group provides risk and asset management software and services to automotive and property markets through companies in almost 50 countries.

It also owns HPI and CarweB in the UK.

The acquisition of CAP is “a key piece” of the group’s risk and asset management strategy in the UK market, Solera said.

“Expanding our valuation services through CAP will connect our investments and grow our presence in each phase of the vehicle lifecycle,” Solera founder, chairman and chief executive Tony Aquila said.

CAP, which was founded in Skipton in 1979, runs a range of data products developed for easy integration in web and business software.

Its current used car values offer a real-time valuation that is benchmark for residual value performance in vehicle disposals across a variety of sectors. It currently processes more than 18 million valuations annually.

Montagu, which has more than €4bn in assets under management, acquired CAP in 2012.

CAP has since increased its workforce by 75 per cent, leading to 40 per cent growth in revenues. Its turnover in 2013 was around £23m.

The firm expanded into Europe from its UK base with the acquisition of Derwent Management Services (DMS) in February.

Edward Shuckburgh, director at Montagu, said: “We are very proud to have worked closely with CAP’s excellent management team to accelerate the Company’s growth, both in the UK and internationally, through significant investment in its data-products, the team and selective acquisitions.”