Jonathon Rubinsztein

AUTOMOTIVE parts catalogue company Infomedia Ltd is to expand its global data division with its decision to buy Australian-based data- reporting business Nidasu.

Infomedia, a listed Australian company with international clients across a wide range of brands, provides parts and service systems, including its MicroCat catalogue brand, to 170,000 dealership professionals in 186 countries.

It said that combining Infomedia’s data assets and Nidasu’s analytics platform would provide car-makers and dealerships with access to processes that will improve their operational performance.

Infomedia already has a wide portfolio of products:

• Microcat EPC – Cloud- based OEM EPC (electronic parts catalogue) with powerful search features and VIN-precise interpretation to sell more genuine parts
• Superservice Menus – Industry-leading, VIN-precise quoting system allows staff to sell with confidence and create certainty and trust with customers
• Superservice Triage (eVHC) – VIN-precise and mobile-friendly inspection selling system that builds service revenue and customer satisfaction
• Superservice Register – A secure online database for the recording of vehicle service and repair history
• Superservice Connect – An online self-serve customer booking system with VIN-precise quotes that is quick and available 24/7 for customer convenience
• Superservice Insight – Real-time CSI survey tool with instant feedback that fosters customer engagement and improves brand loyalty
• Microcat PartsBridge – An EPC-based online parts ordering system, connecting OEM dealerships and body-shop customers to maximise genuine parts sales
• Microcat Market – Allows trade repairers to conveniently access the most up-to-date OEM parts data, 24 hours a day, seven days a week.

In a statement to the Australian Securities Exchange, Infomedia said Nidasu was well-established and supported by many of Infomedia’s existing customers and introduces new auto-makers to Infomedia.

Infomedia is one of three international players in the automotive electronic parts catalogue – or EPC – business and its MicroCat EPC is known around the world.

In its annual report to shareholders for the 2017-18 year, Infomedia managing director and CEO Jonathon Rubinsztein said that after focusing on international growth and strengthening its existing client base, “the second area of focus in our strategy is allocating investment to strengthen the MicroCat parts suite through innovation and exploring adjacencies”.

“We will explore acquisitions that are close to our core and value-adding,” he said.

“We will pursue opportunities that provide an entry into new markets, access to new customers or provide innovation to our existing parts and service software.”

The acquisition of Nidasu brings customised solutions for OEMs and dealerships that include data collation on key performance indicators, retention and dealer management system integration including automated parts receipting; service model and schedule information; VIN information; and the collection, collation and reporting of service, parts and sales invoice data.

Nidasu co-founder and CEO Jonathan Scharrer said: “We are excited about joining Infomedia whose global footprint, strong customer relationships and quality commercial infrastructure will support the expansion of our business.”

Mr Rubinsztein said data analytics as provided by Nidasu remained an underinvested opportunity for car-makers and dealerships.

“The Nidasu technology provides real-time insights on transactions and behaviours critical to building effective customer retention strategies for both dealerships and auto-makers,” he said.

Infomedia’s acquisition is expected to contribute to its revenue and earnings immediately, although Mr Rubinsztein said “contribution to the 2019 financial year result will be small”.

The purchase will be funded from Infomedia’s existing cash reserves and is expected to be completed early in the new calendar year.

In February last year, Infomedia signed an exclusive agreement with Nissan Motor Company to produce and supply its MicroCat EPC to Nissan’s global dealership network to 2022.

This global EPC project for Nissan follows Infomedia’s recent product supply agreements with Nissan Australia and Nissan Europe to provide Superservice Menus quoting software in those markets.

At the time, Mr Rubinsztein said car-makers were facing “the perfect storm” as vehicle technology becomes increasingly complex and revenue pressures from aftermarket competition start to impact.

“We’re seeing a greater demand for auto-makers to innovate faster in their parts and service business,” he said.

“However, in-house-developed software often lacks the investment required to keep up with rate of change in technology, while suppliers with inferior legacy technology are fast becoming a liability.

“I believe Infomedia is well placed to take advantage as more auto-makers embrace new technologies to grow market share. We’re helping our customers rethink their strategies by leveraging our interoperable software that enables collaboration across parts and service functions.”

Infomedia also bought the FieldForce CRM software for the automotive parts wholesale industry from Sydney-based Randem Group in August 2017.

FieldForce, since rebranded MicroCat CRM, supports original parts sales for OEMs and dealerships and the technology is compatible with Infomedia’s EPC software.

By Neil Dowling