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EXHIBIT 99.1
REYNOLDS AND REYNOLDS ACQUIRES DEALERKID,
STRENGTHENS WEB-ENABLED CRM CAPABILITIES TO BOOST CONSUMER LOYALTY
FORMS CONSUMER LOYALTY SERVICES PRACTICE
TO HELP CAR COMPANIES AND AUTO RETAILERS CAPTURE MORE BUSINESS
DAYTON, OHIO, NOV. 28, 2000 - The Reynolds and Reynolds Company (NYSE:
REY) today announced the acquisition of DealerKid, a premier provider of
electronic customer marketing and relationship management software and services
for automotive retailers in the United States and Canada. Combined with the
formation of its new Consumer Loyalty Services practice of over 50 dedicated CRM
consultants, Reynolds creates the first, fully-integrated set of Internet-based
retail CRM solutions in the automotive industry.
Reynolds expects minimal dilution from the transaction, and as a result
is not adjusting its previously-stated guidance for fiscal year 2001 financial
performance. As part of the transaction, Reynolds granted a software license
back to DealerKid's principals for use in unrelated industries.
"The explosion of Internet technology has created significantly greater
opportunities for car companies and auto retailers to attract and retain
consumers in the vehicle ownership cycle," Lloyd "Buzz" Waterhouse, Reynolds'
president and CEO, said. "Since Reynolds already serves nearly 30 million
consumers on behalf of our retail customers, we're in an excellent position to
help them better manage the changes brought about by the Internet and other
technologies. That's why customer relationship management represents a critical
element of our company's growth strategy. Auto retailers need a single provider
of both the tools and the processes to help them strengthen customer
relationships across the many touch points within automotive retailing. The
acquisition of DealerKid and the formation of the new Consumer Loyalty Services
practice will help our customers dramatically improve the processes critical to
capture more business, and strengthen their customer relationships."
DealerKid is one of the first providers of CRM applications through the
Internet as an application services provider, or ASP. Its solutions are fully
customized to meet the needs of individual auto retailers, megadealerships and
car companies. They provide a rich set of applications that allow the user to
capture, manage and use consumer information from all sources - including the
Internet and traditional channels - in order to enhance marketing, sales, and
customer support, and increase profits.
Charles V. Shamblee III, president of DealerKid, said, "The combination
of our premier CRM solution with Reynolds' existing assets, in-depth knowledge
of automotive retailing, and commitment to CRM will result in nothing less than
an industry-leading customer relationship management machine. As part of
Reynolds' Consumer Loyalty Services practice, DealerKid will continue to lead
the industry in CRM solutions, in an ASP environment, for retailers and
manufactures."
According to Brian Hoecht, chief financial officer of North York
Chevrolet Oldsmobile in Toronto, "We use CRM as a tool to improve profits, drive
vehicles and service revenues, as well as improve customer loyalty and customer
satisfaction. That's what DealerKid is doing for us. Everyone in our dealership,
our service advisors and body shop estimators to our sales and staff and
managers, have been trained on the people and technology skills so critical to
the success of CRM technology."
DealerKid applications are driving results across the auto retail
industry, including all Infiniti stores
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in North America. "The CRM solutions offered by DealerKid have enabled Infiniti
to extend its e-business strategy by deploying an integrated, open, real-time
automotive retail electronic customer marketing and management application,"
said Ted Ross, Nissan's corporate manager for Relationship Marketing. "By
integrating our Infiniti dealerships with Nissan North America's headquarters,
we can provide improved marketing support to our dealers while assisting them in
establishing and managing relationships with customers."
Reynolds intends to support the rapid growth of DealerKid with
consulting and training services offered by the newly-formed Consumer Loyalty
Services practice of over 50 dedicated CRM specialists. These CRM specialists
will also support Reynolds' extensive, existing CRM business including Customer
Marketing Services, an outsourced marketing solution serving over 4,000
retailers in North America. Customer Marketing Services delivers over three
million consumer communications monthly via consumers' preferred methods of
contact including e-mail, mail or telephone, and provides data management
services for over 30 million unique customer records.
Reynolds and Reynolds, headquartered in Dayton, Ohio, is the leading
provider of integrated information management solutions to help drive
profitability in the automotive retailing marketplace. The company's services
include a full range of retail and enterprise management systems, networking and
support, e-business applications, Web services, learning and consulting
services, customer relationship management solutions and leasing services. To
find out more about the company, its vision, products and services, visit
www.reyrey.com.
Certain statements in this news release constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995. The forward-looking statements are based on current expectations,
estimates, forecasts and projections of future company or industry performance
based on management's judgment, beliefs, current trends and market conditions.
Forward-looking statements made or to be made by or on behalf of the company may
be identified by the use of words such as "expects," "anticipates," "intends,"
"plans," "believes," "seeks," "estimates" and similar expressions.
Forward-looking statements are not guarantees of future performance and involve
certain risks, uncertainties and assumptions that are difficult to predict.
Actual outcomes and results may differ materially from what is expressed,
forecasted or implied in the forward-looking statements. See also the discussion
of factors that may affect future results contained in the company's Current
Report on Form 8-K filed with the SEC on August 11, 2000, which we incorporate
herein by reference. The company undertakes no obligation to update any
forward-looking statements, whether as a result of new information, future
events or otherwise.
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CONTACTS:
MEDIA
Paul Guthrie Bob Sadowski
937.485.4216 937.485.4598
[email protected] [email protected]
INVESTORS
Mitch Haws
937.485.4460
[email protected]
