BLOG Will Keyloop and ATG coming together benefit dealers?

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The acquisition of ATG by Keyloop brings together two of the largest technology companies that support a large number of franchised and independent dealers across the UK.

The question for the industry is whether the coming together of these two companies will benefit retailers. The news made headlines a few weeks ago, and the deal is set to transform the technology landscape in UK automotive retail.

On the face of it, it looks like a good fit, and one could argue that a consolidated approach is required as dealers are being overrun with multiple systems, and integration is absolutely critical. The move reflects the ongoing digitalisation of the industry, with dealers requiring string technology to improve their offering and operational efficiency.

Will the move stifle innovation? Our view is that it probably won’t. We’ve seen over 450 businesses since the launch of the fund last year, and there are plenty of strong ideas that will help innovation, although sadly, not all will get funding and survive.

Keyloop, a global automotive technology company, says its acquisition of ATG, a specialist in omnichannel retail solutions, will create an integrated technology portfolio to improve customer experiences for retailers and OEMs globally.

ATG is headquartered in Kent and employs over 330 people, providing solutions to automotive retailers, OEMs, financiers, and fleet suppliers worldwide. While Keyloop is known for its ‘experience-first’ approach to vehicle ownership.

The two companies say the move marks an important step forward in making Experience-First a tangible reality for customers, and it will free dealers from complicated vehicle sales and deliver mobility via digital, retention, and data solutions.

Together, ATG and Keyloop are well positioned to innovate further as organic growth, often driven by new products and services,  will be a key part of the strategy and will drive a large part of future value for Keyloop investors.

By combining their resources and expertise, merged technology companies can offer a broader range of products and services to customers. This can lead to more comprehensive solutions and better meet diverse customer needs.

The combined talent pool, research capabilities, and financial resources of merged companies can accelerate innovation, resulting in more advanced and cutting-edge products for customers.

With increased resources, merged tech companies can provide better customer support services, including more robust technical assistance, faster response times, and improved overall customer experience.

Mergers can help tech companies expand their geographic reach and access new customer segments, providing customers with more availability and accessibility to their products and services.

By eliminating redundancies and achieving economies of scale, merged tech companies can streamline operations, reduce costs, and pass on these savings to customers through lower prices or better value offerings.

Mergers can strengthen a tech company’s market position, enabling it to better compete with rivals and offer customers more competitive products and pricing.

Tech company mergers can benefit customers by providing access to a broader range of innovative products, better support services, increased availability, and potentially more competitive pricing due to improved efficiency and market positioning.

The acquisition sets a new precedent in the automotive tech industry and consolidation as the sector demands integration, and customer-first technology solutions to enhance automotive buying and owning.

Mike Allen is  managing director of Cambria Private Capital

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