J.D. Power has reached an agreement with the National Automobile Dealers Association to acquire NADA Used Car Guide, the company announced Thursday morning.
The deal will likely close in the third quarter and is subject to Hart-Scott-Rodino Act Review.
J.D. Power will continue to use the NADA Used Car Guide name for a certain period before transitioning it to the J.D. Power brand. NADA Used Car Guide will remain based in the McLean, Va., area.
“We are thrilled to add the NADA Used Car Guide and its vehicle valuation capabilities to J.D. Power,” said Finbarr O’Neill, president of J.D. Power. “NADA Used Car Guide analytical solutions will perfectly complement PIN’s expertise in new- and used- vehicle retail and pricing services, and we will gain an impressive array of integrated vehicle valuation solutions.
“The Guide’s high integrity and unbiased approach to used-vehicle values, analytics and insights fits perfectly with J.D. Power’s reputation as a trusted advisor to the automotive industry.”
J.D. Power said in its news release that with the deal, the PIN retail sales and pricing analytics will be complemented by NADA Used Car Guide’s knowledge, expertise and market presence. This gives the company the opportunity to broaden its analytical and modeling capabilities into new product, expand its auto finance and auto insurance presence and boost its retail solutions, the company said.
“J.D. Power has built its strong brand through analytics, data and its growing benchmark business. Benchmarks are a key to the McGraw Hill Financial business model and the NADA Used Car Guide adds a unique set of valuations, which are used as benchmarks by customers, to the well-respected J.D. Power portfolio,” said Douglas Peterson, president and chief executive officer of McGraw Hill Financial.
“We see clear opportunities for both revenue and cost synergies as J.D. Power couples NADA Used Car Guide with the real-time automotive capabilities of the Power Information Network (PIN) to bring value to a broad set of customers. This is another example of McGraw Hill Financial utilizing an attractive tuck-in acquisition to expand the capabilities of the company's iconic businesses,” Peterson added.
NADA members will still be provided with a subscription to the Guide as part of their membership, NADA president Peter Welch said in the news release.
“This deal is a perfect fit for dealers and NADA Used Car Guide customers. Under terms of the deal, NADA members will continue to receive a subscription to the Guide as a membership benefit,” said Welch. “NADA and J.D. Power will continue to build upon our longstanding alliance by sharing data and insights, and bringing together retailers and leaders from the automakers, suppliers and the media at co-hosted conferences and events, offering thought leadership and solutions directly benefiting the retailer network and overall automotive industry.”
NADA Used Car Guide vice president and chief operating officer Mike Stanton added: “This is an exciting opportunity for Used Car Guide to take advantage of great synergies with JD Power. On its own, the NADA Used Car Guide provided the best data available on used-car pricing. But now, our customers will benefit from a seamless view of new- and used-vehicle price information with both companies under the umbrella of the J.D. Power brand.”