Manheim to Purchase Dealer Services Corp.

On Thursday afternoon, Manheim revealed it is purchasing Dealer Services Corp. of Indiana in an effort to “reinforce its commitment to provide inventory financing to independent dealers.”

The deal is designed to complement the lending Manheim already offers via its financial services arm — Manheim Financial Services.

“Manheim is always looking for ways to enhance its service offering to customers,” explained Sandy Schwartz, Manheim president. “The purchase of DSC presents a great opportunity for us to broaden our lending scope and customer base. In addition, we gain access to state-of-the-art technology and digital tools that will enhance our customers’ experience and improve the company’s efficiencies and opportunities for lending.

“We also gain a group of employees at DSC that have a strong culture of customer focus and service, adding to the high level of personalized service our MAFS employees deliver,” he continued.

Also chiming in was Brian Geitner, chief executive officer of DSC, “Our mission of empowering our customers with strategic products and services is only more enhanced by joining the Manheim group of companies. It’s easy to see how MAFS and DSC’s service platforms will complement each other and broaden Manheim’s ‘service reach’ across the country.

“We are proud to add the DSC brand to Manheim’s strong lineup of products, services and companies,” he continued.

Management explained that adding the DSC line to MAFS’ existing products will give dealers access to a broader offering of products and additional staff to help with their needs.

Moreover, technology will be garnered by Manheim as a part of this deal, making it easier for customers to get information via smartphones and desktops regarding their company lines of credit, officials said.

Barclays Capital acted as the financial adviser to Manheim, while William Blair & Co. acted as the financial adviser to DSC.

Pending regulatory approval, the transaction is slated to close within the first quarter.

Editor’s Note: Stay tuned to Auto Remarketing for more insights into how this deal will impact dealers and the market.