driversshield.com Announces Sale of Fleet Services Unit, Equity Investment and Strategic Alliance with PHH Arval
driversshield.com Corp. on Oct. 30, 2001 announced that it has entered into a definitive agreement with PHH Arval, a provider of fleet management services whereby PHH will purchase driversshield.com’s FS (Fleet Services) subsidiary for $6.3 million. PHH will also make a $1 million strategic investment in driversshield.com Corp. The transaction is expected to close before the end of February 2002, subject to shareholder approval and certain other conditions.
In addition, it is contemplated that driversshield.com Corp. and PHH Arval will enter into a strategic alliance, under which PHH will provide services to both of driversshield.com Corp.’s other business units –CRM (customer relationship management for auto insurance companies) and ADS (auto discounts and services membership programs) – supplying information technology development and hosting, operations support, and supplier network management.
The two companies intend to cross-market their services and share their nationwide repair net-works, thereby expanding both companies’ coverage and opportunities.