Vista Equity Partners, led by Robert F Smith, plans to enlist banks for the Solera IPO

According to individuals familiar with the matter, Vista Equity Partners (Vista), a private equity firm, is in the process of engaging investment banks for the purpose of facilitating a U.S. initial public offering (IPO) for Solera, a company specializing in software solutions for the automotive and insurance sectors.

Sources, who preferred to remain anonymous due to the confidential nature of the matter, disclosed that Vista, which acquired Solera for US$6.5 billion in 2016, is currently assessing potential IPO underwriters through interviews.

The timing of the IPO is contingent upon market conditions and could potentially occur by the conclusion of 2024, as per the sources. However, Solera has yet to finalize details regarding the amount it intends to raise and the valuation it aims to achieve through the IPO.

Both Vista Equity Partners and Solera refrained from providing comments when approached for clarification.

Headquartered in Westlake, Texas, Solera serves clients across more than 100 countries, offering software solutions tailored to the automotive and insurance sectors. Its range of offerings encompasses fleet management software and facilitates various tasks such as managing collision claims, vehicle title registration, and vehicle repairs, according to information available on its website. Additionally, Solera operates an auto finance division, extending loans to customers in the United States for vehicle purchases.

Vista’s current initiative to bring Solera to the public market follows a previous unsuccessful attempt in 2021, wherein efforts to take the company public via a special purpose acquisition company (SPAC) did not materialize.

While preparations for high-profile IPOs, including those of social media platform Reddit and cybersecurity software startup Rubrik, are underway, the U.S. IPO market continues to grapple with subdued activity, reflective of trends observed over the past two years.