Snap-on Incorporated (NYSE: SNA) declared on Monday that it has bought the Dealer FX-Group, Inc. The Ontario-based Dealer-FX Group will receive $200 million in cash by Snap-on. Dealer-FX focuses on software as a service (SaaS) management systems, information and communication platforms, and broad data combinations, and provides a digitized solution that enhances workplace efficiency and optimizes the service experience of vehicle owners.
This buying of Dealer-FX will balance and grow the current OEM and dealership business of Snap-on in its Repair Systems & Information (RS&I) Group that offers electronic parts catalogs, an essential tool, and diagnostics programs, and custom analytics to OEMs and more than 50,000 dealerships, internationally.
Dealer-FX will be notified within the firm's RS&I segment with 2020 fiscal year profits of nearly $37 million. It has been disclosed that the deal is not anticipated to have a significant effect on earnings per share of SNA during 2021.
Snap-on believed that Dealer-FX will further expand its strategic profile into new technologies and platforms as they go into the vehicle parc. It also broadens the reach of its shop management software and optimizes its technical knowledge concerning dealership service and repair operations.