Assists Autologue in DMS purchase from eBay
San Jose, Calif., July 7, 2016 — Capstone Financial Group, an investment banking firm specializing in the auto aftermarket, has announced its first deal in Silicon Valley, facilitating an acquisition for Autologue Computer Systems, Inc. The deal, in which Autologue purchased three distribution management systems from eBay, Inc., makes Autologue the second largest player in its industry. The transaction also marks Capstone’s first foray into software, a significant step in a segment of the aftermarket that is expected to grow exponentially with the advent of driverless cars.
Capstone provided key guidance across several aspects of the Autologue/eBay deal. “This was a complicated transaction, for a number of reasons,” said Jim Franco, Autologue’s president and CEO. “Capstone not only helped us structure a deal that allowed for an attractive interest rate, but helped us determine the boundaries for proceeding on a reasonable basis for getting the deal closed.” Autologue closed the deal to purchase the three distribution management systems — PartsWatch, AutoEase, and Maccel — from eBay early this month.
Capstone’s presence in Silicon Valley sends a strong signal about how important the Valley will be to next-generation auto technology. Revenues from the sale of vehicle software — sensors, navigation, cameras, radar, and much more — are expected to generate billions of dollars annually. “Silicon Valley companies are poised to dominate this market,” said Dan Smith, president of Capstone Financial Group. “We believe our expertise in the auto aftermarket combined with our proven track record in creating value for our clients will enable us to be a key player as this next-generation market takes shape.”
About Capstone Financial Group: Capstone was established in 1989 by its current owner and president, M. Daniel Smith, as an investment banking firm specializing in the auto aftermarket. Offering owners of middle-market companies a unique understanding of their business issues and concerns, Capstone today is the world’s highest-producing boutique M&A advisory firm for the automotive industry.