Fleet software firm CFC up for sale
10 November 2008
Author: Tristan Young
Fleet software firm CFC Solutions is officially for sale along with its sister firm Pinewood for an estimated £60m.
A financial statement from owner Pendragon, the dealer group, said: "We can confirm that we are currently considering options regarding the future of this business and a further announcement will be made as appropriate in due course."
CFC is the current holder of the BusinessCar Award for best software provider. Sister firm Pinewood builds dealer management software and both firms are considered non-core assets of Pendragon, the UK's largest car dealer group.
Chief executive Trevor Finn was unavailable for comment.
The sale of CFC Solutions is being carried out to minimise losses in the current economic climate.
The Pendragon statement continued: "Assuming no significant further downturn in economic activity between now and the year end, we expect to report a full year loss before exceptional items for 2008 of £30 million."
Speaking to BusinessCar in July this year CFC boss Neville Briggs said: "There will be consolidation in the fleet software market in the next few years. Some providers are not giving people what they want. It doesn't matter if those systems are slightly cheaper than ours; if it's not going to deliver, it's no good."
Briggs went on to say that this situation was a "fantastic opportunity" for CFC, adding: "We would be acquisitive if the right situation came along. And we do see [businesses] on a regular basis."