Reynolds and Reynolds
|Founded||Dayton, Ohio (1866)|
|Headquarters||Kettering, Ohio - Worldwide Headquarters|
|Key people||Bob Brockman, Chairman/CEO/
Rob Nalley, Vice Chairman
Ron Lamb, President
|Products||Automotive dealer software and services|
|Owners||Goldman Sachs Capital Partners and Vista Equity Partners|
The Reynolds and Reynolds Company is an automobile dealer support company based in Dayton, Ohio. It was a private company from 1866 to 1961 and operated as a public company from 1961 to 2006. In 2006, Reynolds and Reynolds was bought by Houston-based Universal Computer Systems Inc.(UCS).
Reynolds and Reynolds has major U.S. operations in Dayton and Celina, Ohio, and in Houston and College Station, Texas. The company operates as Reynolds and Reynolds Canada Ltd. in Canada, as well as Reynolds and Reynolds Ltd in the U.K. and Reynolds Europe in several European countries. In November 2012 Kalamazoo-Reynolds Ltd in the UK was rebranded as Reynolds and Reynolds Ltd.
Gardner & Reynolds was founded in 1866 in Dayton, Ohio, by Lucius D. Reynolds and his brother-in-law, James R. Gardner. Their small manufacturing company was one of the first to print standardized business forms. The firm became Reynolds & Reynolds in 1867 when Gardner sold out to Ira Reynolds, Lucius Reynolds's father. Eventually, the firm was incorporated as The Reynolds and Reynolds Company in 1889. Subsequently in 1927, Reynolds created the first standardized accounting forms and a paper-based accounting system for Chevrolet and its retailers. From that early work with Chevrolet, Reynolds evolved to become a major business forms and systems provider to the automobile retailer market in North America.
Recognizing the opportunity to advance the growth of the forms business, in 1960 Reynolds entered the electronic data processing (EDP) field when it purchased Controlomat. Throughout the 1960s, Reynolds became the first form company to offer computer services to automotive retailers throughout the nation – a key step in transforming the way individual retailers and car companies managed their businesses. The software offerings and products eventually evolved into the Reynolds "ERA dealer management system", which integrated all business office functions. The company expanded further in April 2000 with the acquisition of Cyber Car and Automark under the holding group named HAC Group, two companies valued at US$200 million; later in 2003, Reynolds moved into the global automotive retailing marketplace when it acquired German software provider Incadea AG.
In September 2006, The Reynolds and Reynolds Company and Universal Computer Systems, Inc. completed a merger. The merger transaction was valued at $2.8 billion, and included the assumption of Reynolds’s debt with Reynolds and Reynolds becoming a wholly owned subsidiary of Universal Computer Systems, and the new company coming to be known as The Reynolds and Reynolds Company. Vista Equity Partners, a private equity firm based in San Francisco, CA, was the equity sponsor in the buyout.
Brockman's $2.8 billion buyout was funded primarily by a group of investors that includes Goldman Sachs Capital Partners and San Francisco-based Vista Equity Partners. For the fiscal year ended Sept. 30, 2005, Reynolds reported net income of $33.3 million on revenue of $1.4 billion. The final conditions of the merger allowed for $40 in cash for each Reynolds and Reynolds Class A common share and $40 in cash for every 20 Reynolds and Reynolds Class B common share.
Bob Brockman, formerly CEO of UCS, is currently the Chairman and CEO of the new combined company.
Five months after the merger was completed, the new ownership of the company began to make broad changes to the daily operations of the business. As the Houston Business Journal reported, "the blending of the two firms has created a culture clash that's led to the departure of Reynolds employees, from executives to field technicians, both through lay-offs and of their own volition, since last August . Reynolds' local employee base has shrunk at least 10 percent since January 2006." In October 2007, pre-merger CEO Fin O'Neill left the company.
Newly implemented workplace policies, such as a tobacco-free campus and a four-month waiting period for insurance benefits created concern and discord among future and existing Reynolds employees. About 45 employees left the company after refusing to sign a new employee agreement which contained a three years non-compete clause. Canadian employees were required to sign a 12 month non-compete agreement.
In January 2008, vice president of finance Carolyn Wall filed a lawsuit against Reynolds claiming that "it breached two contracts with her and engaged in fraudulent misrepresentations and concealment of facts meant to deceive her." Wall claimed that as a result of the merger the organization is struggling with low employee morale, low pay and an exodus of employees; the lawsuit also alleges that Wall was demoted as a result of her complaints.
Reynolds and Reynolds acquired XtreamService in November 2013.
In January 2002 UCS acquired Kalamazoo Computer Group plc based in Birmingham, United Kingdom, Kalamazoo operated in the Automotive Dealer software business and a strong presence in the Hardware Maintenance break/fix business. The business was re-branded as Kalamazoo Ltd until 2004 where it was renamed Kalamazoo-UCS Ltd. After the 2006 UCS acquisition of Reynolds and Reynolds in the US, the company was renamed Kalamazoo-Reynolds Ltd, the staff from DCS Automotive which Reynolds had acquired were merged into the Kalamazoo office. In November 2008 Kalamazoo-Reynolds acquired MMI Automotive Ltd. In November 2012 Kalamazoo-Reynolds rebranded to Reynolds and Reynolds Ltd. At the same time Reynolds and Reynolds acquired Infosystems Ltd based in Lutterworth, Leicestershire, this strengthened the IT Services business, which is now trading as ITS.
The Reynolds and Reynolds Company Foundation offers support primarily to institutions of higher learning, which includes academic scholarships. The scholarships include the Texas A&M Scholarship to all full-time undergraduate students at Texas A&M University, the Reynolds and Reynolds Leadership Scholars Program for computer science and engineering students at Wright State University, and Reynolds College Scholarships for children of the company’s employees.
The Reynolds and Reynolds Associate Foundation was founded in 1956 and is funded by contributions of Reynolds employees. It provides financial support to area health and human service agencies in the state of Ohio throughout Montgomery, Miami, Clark, Darke, Preble, Warren, Butler, and Greene counties.
In September 2013, Reynolds and Reynolds stated that they will withdraw a $250 million donation made in July to the Centre College, where school officials touted the gift as the largest ever to a private liberal arts college in the United States. The gift was withdrawn after the company canceled a $3.4 billion loan offering to finance the company and make a large payout to its owners.
Opposition to Patient Protection and Affordable Care Act
The Reynolds and Reynolds Company submitted a letter on Oct. 21, 2011 to Treasury Secretary Timothy Geithner, Health and Human Services Secretary Kathleen Sebelius and Labor Secretary Hilda Solis along with 60 other companies advocating against provisions in the Patient Protection and Affordable Care Act. The letter urged Obama administration Cabinet officials to reevaluate provisions they considered to be "unnecessary expenses" to businesses and to extend a deadline for them to provide health benefit summaries to government agencies.
Campaign Contributions Post Citizens United
Since the Citizens United v. Federal Election Commission ruling that prohibited the government from restricting independent political expenditures by corporations, entities associated with or linked to The Reynolds and Reynolds Company have been some of the top donors, giving over $2 million to Super PACs supporting Republican candidates.
On June 20, 2011, Dealer Computer Services, a subsidiary of The Reynolds and Reynolds Company, donated $50,000 to Americans for Rick Perry, a Super PAC supporting the 2012 presidential campaign of Rick Perry. Prior to this donation, the chairman and CEO of The Reynolds and Reynolds Company had donated over $280,000 to Rick Perry's Texas campaign races over the past decade.
On May 22, 2012, CRC Information Systems, a subsidiary of The Reynolds and Reynolds Company bought in 2008, donated $333,333 to Restore Our Future, a Super PAC supporting the 2012 presidential campaign of Mitt Romney. On the same day, two more donations totaling $666,667 were received by the Pro-Romney Super PAC from two other companies, Fairbanks Properties and Waterbury Properties, that listed the same return address with the Federal Election Commission and have the same board members filed with the Texas Comptroller of Public Accounts as CRC Information Systems and The Reynolds and Reynolds Company.
On June 6, 2012, American Crossroads, a Super PAC supporting the 2012 presidential campaign of Mitt Romney, received $1 million in the same contribution amounts from CRC Information Systems, Fairbanks Properties and Waterbury Properties.
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- "Schedule 14A". United States Security and Exchange Commission. Retrieved 2009-01-05.
- "Vista Equity Partners". Retrieved 2011-04-12.
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- Dirr, Jacob (2008-02-11). "Reynolds' officer seeks $570k from company". Dayton Business Journal. Retrieved 2009-01-05.
- "Who’s the Lowest of them All? Glassdoor Reports Companies with Lowest Overall Ratings". Glassdoor. Retrieved 2008-12-29.
- Barkholz, David. Reynolds and Reynolds acquires software firm XtreamService. November 21, 2013
- "Reynolds and Reynolds Infosystems is changing its name to ITS!". ITS. 14 July 2014.
- "Reynolds and Reynolds Company Foundation". Reynolds and Reynolds. Retrieved 2011-03-03.
- "Reynolds offers 20 scholarships to area residents". Dayton Daily News. 2010-07-28. Retrieved 2011-03-03.
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- "FEC Itemized Receipt". Federal Election Commission. Retrieved 2012-07-30.
- "GOP establishment money men ride to Dewhurst’s rescue". The Dallas Morning News. Retrieved 2012-07-30.
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- "The SuperPAC Superdonors". NPR. Retrieved 2012-07-30.