The Reynolds and Reynolds Company
Encyclopedia
The Reynolds and Reynolds Company has a long history as a private company in the Dayton, Ohio, area - from 1866 to 1961. Reynolds and Reynolds operated as a public company from 1961 to 2006. In 2006, Reynolds and Reynolds merged with Houston-based Universal Computer Systems Inc. (UCS).
Reynolds and Reynolds has major U.S. operations in Dayton and Celina, Ohio, and Houston and College Station, Texas. The company operates as Reynolds and Reynolds Canada Ltd. in Canada, as well as Kalamazoo-Reynolds in the U.K. and Reynolds Europe in several European countries.
, a private equity firm based in San Francisco, CA, was the equity sponsor in the buyout.
Brockman's $2.8 billion buyout was funded primarily by a group of investors that includes Goldman Sachs Capital Partners
and San Francisco-based Vista Equity Partners
. For the fiscal year ended Sept. 30, 2005, Reynolds reported net income of $33.3 million on revenue of $969 million. The final conditions of the merger allowed for $40 in cash for each Reynolds and Reynolds Class A common share and $40 in cash for every 20 Reynolds and Reynolds Class B common share.
Bob Brockman, formerly CEO of UCS, is currently the Chairman and CEO of the new combined company.
Newly implemented workplace policies, such as a tobacco-free campus and a four-month waiting period for insurance benefits created concern and discord among existing Reynolds employees. About 45 employees left the company after refusing to sign a new employee agreement which contained a three years non-compete clause. Canadian employees were required to sign a 12 month non-compete agreement.
In January 2008, vice president of finance Carolyn Wall filed a lawsuit against Reynolds claiming that "it breached two contracts with her and engaged in fraudulent misrepresentations and concealment of facts meant to deceive her." Wall claimed that as a result of the merger the organization is struggling with low employee morale, low pay and an exodus of employees; the lawsuit also alleges that Wall was demoted as a result of her complaints.
, the Reynolds and Reynolds Leadership Scholars Program for computer science and engineering students at Wright State University
, and Reynolds College Scholarships for children of the company’s employees.
The Reynolds and Reynolds Associate Foundation was founded in 1956 and is funded by contributions of Reynolds employees.
Reynolds and Reynolds has major U.S. operations in Dayton and Celina, Ohio, and Houston and College Station, Texas. The company operates as Reynolds and Reynolds Canada Ltd. in Canada, as well as Kalamazoo-Reynolds in the U.K. and Reynolds Europe in several European countries.
Early Years
Gardner & Reynolds was founded in 1866 in Dayton, Ohio, by Lucius D. Reynolds and his brother-in-law, James R. Gardner. Their small manufacturing company was one of the first to print standardized business forms. The firm became Reynolds & Reynolds in 1866 when Gardner sold out to Ira Reynolds, Lucius Reynolds's father. Eventually, the firm was incorporated as The Reynolds and Reynolds Company in 1889. Subsequently in 1927, Reynolds created the first standardized accounting forms and a paper-based accounting system for Chevrolet and its retailers. From that early work with Chevrolet, Reynolds evolved to become a major business forms and systems provider to the automobile retailer market in North America.Modernizing
Recognizing the opportunity to advance the growth of the forms business, in 1960 Reynolds entered the electronic data processing (EDP) field when it purchased Controlomat. Throughout the 1960s, Reynolds became the first form company to offer computer services to automotive retailers throughout the nation – a key step in transforming the way individual retailers and car companies managed their businesses. The software offerings and products eventually evolved into the Reynolds "ERA dealer management system", which integrated all business office functions. The company expanded further in April 2000 with the acquisition of Cyber Car and Automark under the holding group named HAC Group, two companies valued at US$200 million; later in 2003, Reynolds moved into the global automotive retailing marketplace when it acquired German software provider Incadea AG.Merger
In September 2006, The Reynolds and Reynolds Company and Universal Computer Systems, Inc. completed a merger. The merger transaction was valued at $2.8 billion, and included the assumption of Reynolds’s debt with Reynolds and Reynolds becoming a wholly owned subsidiary of Universal Computer Systems, and the new company coming to be known as The Reynolds and Reynolds Company. Vista Equity PartnersVista Equity Partners
Vista Equity Partners is a private equity firm focused on investing in software and technology-enabled businesses. The firm was founded in 2000 and is headquartered in San Francisco, California with additional offices in Chicago, Illinois and Austin, Texas. Vista Equity Partners currently holds...
, a private equity firm based in San Francisco, CA, was the equity sponsor in the buyout.
Brockman's $2.8 billion buyout was funded primarily by a group of investors that includes Goldman Sachs Capital Partners
Goldman Sachs Capital Partners
Goldman Sachs Capital Partners is the private equity arm of Goldman Sachs, focused on leveraged buyout and growth capital investments globally....
and San Francisco-based Vista Equity Partners
Vista Equity Partners
Vista Equity Partners is a private equity firm focused on investing in software and technology-enabled businesses. The firm was founded in 2000 and is headquartered in San Francisco, California with additional offices in Chicago, Illinois and Austin, Texas. Vista Equity Partners currently holds...
. For the fiscal year ended Sept. 30, 2005, Reynolds reported net income of $33.3 million on revenue of $969 million. The final conditions of the merger allowed for $40 in cash for each Reynolds and Reynolds Class A common share and $40 in cash for every 20 Reynolds and Reynolds Class B common share.
Bob Brockman, formerly CEO of UCS, is currently the Chairman and CEO of the new combined company.
Merger Issues
Five months after the merger was completed, the new ownership of the company began to make broad changes to the daily operations of the business. As the Houston Business Journal reported, "the blending of the two firms has created a culture clash that's led to the departure of Reynolds employees, from executives to field technicians, both through lay-offs and of their own volition, since last August [2006]. Reynolds' local employee base has shrunk at least 10 percent since January 2006." In October 2007, pre-merger CEO Fin O'Neill left the company.Newly implemented workplace policies, such as a tobacco-free campus and a four-month waiting period for insurance benefits created concern and discord among existing Reynolds employees. About 45 employees left the company after refusing to sign a new employee agreement which contained a three years non-compete clause. Canadian employees were required to sign a 12 month non-compete agreement.
In January 2008, vice president of finance Carolyn Wall filed a lawsuit against Reynolds claiming that "it breached two contracts with her and engaged in fraudulent misrepresentations and concealment of facts meant to deceive her." Wall claimed that as a result of the merger the organization is struggling with low employee morale, low pay and an exodus of employees; the lawsuit also alleges that Wall was demoted as a result of her complaints.
Corporate Giving
The Reynolds and Reynolds Company Foundation offers support primarily to institutions of higher learning, which includes academic scholarships. The scholarships include the Texas A&M Scholarship to all full-time undergraduate students at Texas A&M UniversityTexas A&M University
Texas A&M University is a coeducational public research university located in College Station, Texas . It is the flagship institution of the Texas A&M University System. The sixth-largest university in the United States, A&M's enrollment for Fall 2011 was over 50,000 for the first time in school...
, the Reynolds and Reynolds Leadership Scholars Program for computer science and engineering students at Wright State University
Wright State University
Wright State University is a comprehensive public university with strong doctoral, research, and undergraduate programs, rated among the 260 Best National Universities listed in the annual "America's Best Colleges" rankings by U.S. News and World Report. Wright State is located in Fairborn, Ohio,...
, and Reynolds College Scholarships for children of the company’s employees.
The Reynolds and Reynolds Associate Foundation was founded in 1956 and is funded by contributions of Reynolds employees.