Networkcar Sold to Hughes Telematics for $17.7 Million
SAN DIEGO – The sale of Networkcar — a wholly owned subsidiary of Reynolds & Reynolds Co. — to New York-based Hughes Telematics was completed Aug. 1 for $17.7 million. Entire proceeds of the Networkcar sale, including earn-out payments, could reach approximately $21 million. The sale yields Reynolds a pretax gain of $7 million to $8 million, according to a Reynolds press release.
Networkcar provides automotive remote diagnostic services and location tracking services for consumers and businesses. Reynolds acquired the company in 2002. Hughes Telematics and Reynolds entered into a purchase agreement July 20. Hughes agreed to buy all of Networkcar’s issued and outstanding capital stock and certain patents and patent applications held by Reynolds. One of Networkcar’s patents is an Internet smog test that can be given without a physical inspection.