Solera Borrowing Up to $850 Million, Says It's in Talks About Acquisition
Four months after buying HyperQuest, and just a couple of months after snapping up Australia's Eziworks, it looks like car insurance software maker Solera Holdings is in the market for yet another acquisition.
On Thursday, Solera announced that its wholly owned subsidiary Audatex North America is planning to issue $700 million to $850 million worth of senior notes due 2021 -- debt, in other words -- and for three reasons. First, Audatex intends to use the money raised from the debt sale to roll over all of the outstanding indebtedness under its senior secured credit facility. Second, the firm will use some of the monies raised for general corporate purposes. Third, Solera says it is also looking to pay for "one or more strategic initiatives that the company may undertake from time to time. ... Such strategic initiatives may include future acquisitions, joint ventures, investments or other business development opportunities."
Solera did say that it's "currently in negotiations with regard to a significant acquisition opportunity." And it's planning to close its debt offering as early as July 2
The article Solera Borrowing Up to $850 Million, Says It's in Talks About Acquisition originally appeared on Fool.com.
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