Genstar Capital is exploring a potential sale of OEConnection, the automotive software firm backed by Ford and General Motors, with sources indicating a valuation of up to $5bn including debt, according to a report by Reuters.
The private equity firm has engaged Evercore to advise on the transaction, which is expected to formally launch later this year, according to people familiar with the matter who requested anonymity due to the confidential nature of the process.
OEConnection, headquartered in Fairlawn, Ohio, was founded in 2000 through a partnership between original equipment manufacturers including Ford and GM. The company provides software solutions that streamline the sale and distribution of original replacement parts across suppliers, dealers, and repair shops.
Sources report that OEConnection generates approximately $400m in annual revenue and $200m in EBITDA, with the business expected to command a valuation exceeding 20x EBITDA – placing the deal value between $4bn and $5bn.
Genstar acquired OEConnection from Providence Equity in 2019, with both Ford and General Motors retaining minority stakes as part of that transaction.
Neither Genstar, Evercore, nor OEConnection were immediately available for comment.
