Pentana Solutions Pty Ltd - completed acquisition of AutoLedgers & NOVA
Type of assessment
Informal Review
Reference
38208
Acquirer(s)
Pentana Solutions Pty Ltd
Target(s)
AutoLedgers NOVA
Industry
Automotive dealer management software (DMS)
Summary
On 17 November 2006 Pentana (then trading as Reynolds and Reynolds) acquired the Business Systems Division of Infomedia Ltd, which included the DMS products AutoLedgers and NOVA.
Outcome of assessment
Not opposed
Total review days *
73
Commenced public review
16th July 2009
Date completed
27th October 2009
Market definition
The ACCC considered the completed acquisition in the context of both a national market for the supply of DMS products and a national market for the supply of spare parts trading systems.
Competition analysis
The ACCC's investigation indicated that certain customers were unlikely to switch from using Pentana's DMS products, which were integrated with its parts trading system. However, the ACCC concluded that the completed acquisition did not have the direct result of substantially lessening the competitive constraints on Pentana in this market.
The ACCC's inquiries indicated that other customers do not trade in spare parts to a large degree. For these customers, the ACCC noted that while the completed acquisition had increased Pentana's share of DMS customers considerably, the merged entity would be likely to face effective competition in the DMS market from other DMS suppliers.
Furthermore, the ACCC's investigation did not reveal evidence that the completed acquisition enabled Pentana to increase prices or reduce service levels in the relevant markets.
Therefore, the ACCC concluded that the completed acquisition did not result in a substantial lessening of competition in the relevant markets.
Review timeline
Date
Event
17th November 2006
Pentana acquired AutoLedgers and NOVA.
10th July 2009
ACCC market inquiries into Carsales completed acquisition of Redbook revealed Pentana's completed acquisition of AutoLedgers and NOVA.
16th July 2009
ACCC commenced review under the Merger Review Process Guidelines.
6th August 2009
Closing date for submissions from interested parties.
27th October 2009
ACCC announced it would not oppose the completed acquisition.
* Total Review days = Total business days less public holidays and time during which the review was suspended.
