ARI Network Services buys TCS Technologies
ARI Network Services Inc. (ARI) has acquired TCS Technologies, a provider of software, websites and digital marketing services for tire and wheel dealers, wholesalers, retreaders and manufacturers.
"ARI's growth strategy continues to be fueled by a combination of organic growth and strategic acquisitions," says Roy Olivier, CEO and president.
Olivier says the acquisition of TCS aligns with ARI in several ways:
* The acquisition consolidates ARI’s position as the leading provider of eCommerce-enabled websites and digital marketing services in the automotive tire and wheel industry.
* TCS provides solutions for the entire automotive tire and wheel supply chain, including wholesalers, retreaders and manufacturers.
* TCS offers a point-of-sale solution for tire and wheel dealers as well as for auto repair shops.
“In short, all of TCS's offerings are in alignment with ARI's mission to help our customers Sell More Stuff! We believe the combined entity will accelerate our growth and leadership position in this market for the foreseeable future," says Olivier.
ARI expects the TCS acquisition to generate incremental revenue of approximately $5 million and be accretive to EBITDA for fiscal 2015, according to CFO William Nurthen. Terms of the transaction were not disclosed.
ARI says the management of TCS Technologies has delivered industry-leading solutions and support to the automotive tire and wheel market for more than 20 years. More than 20,000 automotive tire and wheel dealers depend on TCS's websites and software tools, which are enhanced by more than 750 wheel and tire wholesale distributor connections and eCatalog data for more than 50,000 wheels and 65,000 tires.
According to ARI, TCS's strategy of building connected web services between distributors and retailers complements the tire industry's shift to a two-step distribution model; connecting businesses and consumers closer to thousands of on-demand supply points.
TCS will maintain normal operations out of its headquarters located in Cookeville, Tenn., under the continued leadership of Barry Reese, who will assume the role of VP and GM of TCS Technologies, an ARI Company.
"At TCS, we pride ourselves on our industry-wide reputation for providing efficient and effective technology solutions," says Reese. "Together with ARI, we will innovate faster to create comprehensive solutions at a pace that is unmatched by our competition."
ARI provides data-driven software tools and marketing services to help dealers, equipment manufacturers and distributors increase in-store and online sales. The company says its technology removes the complexity of selling and servicing new and used vehicle inventory, parts, garments and accessories for customers in the automotive tire and wheel aftermarket, powersports, outdoor power equipment, marine, home medical equipment, recreational vehicles and white goods industries. For more information about the company, visit www.investor.arinet.com