MINNEAPOLIS — Reynolds and Reynolds Co. completed this week its acquisition of Wolters Kluwer’s indirect loan origination solutions for €32 million — around $36 million — in cash. As part of the acquisition, Reynolds adds Wolters Kluwer’s AppOne software, risk mitigation services and bankers systems.
Reynolds also gains Wolters Kluwer's line of preprinted and electronic sales and lease forms, which are similar to Reynolds' LAW brand product line, a company spokesman said. Wolters Kluwer first announced it had signed an agreement to divest its indirect loan originations solutions to Reynolds on Sept. 8.
“We see this step as another strategic investment in Reynolds Document Services and in the capacity we have to serve automotive retailers and lenders with a breadth of documents and compliance services,” said Thomas Schwartz, director of corporate communications for the software maker. “Overall, the new businesses complement our existing expertise and strengths in documents and compliance services. At the same time, it expands the customer set and markets we can serve.
By acquiring Wolters Kluwer’s AppOne software, Reynolds and Reynolds is gaining a loan origination platform that connects dealers to finance sources. According to the company, the software allows lenders to create federal and state compliant loan packages that meet their specific needs and requirements.
The software then allows finance sources to share these packages with AppOne’s network of more than 2,000 dealers. Dealers are then able to transfer required information directly from their dealer management systems to AppOne, and submit loan packages directly to the finance source, according to the company. Wolters Kluwer is also providing add-on services designed to help finance sources manage their underwriting processes with approved dealerships.
“As a leader in automotive dealership solutions, Reynolds and Reynolds is well-positioned to continue to support the unique needs of indirect loan origination customers,” said Richard Flynn, CEO of Wolters Kluwer’s GRC division. “Wolters Kluwer will continue to invest in our core regulatory compliance business, which serves thousands of banks, credit unions, and mortgage lenders globally.”
In its September announcement, Wolters Kluwer stated that selling its indirect loan origination solutions was in line with the company’s strategy to focus its financial service group business on growing its compliance content and solutions for banks and other global financial institutions.