Reynolds and Reynolds
| Company type | Private |
|---|---|
| Industry | Software, Business forms, Automotive services |
| Founded | June 1866 |
| Founder | Lucius Reynolds, James Gardner |
| Headquarters | Dayton , United States |
Area served | Automotive dealerships, healthcare, insurance industries |
Key people | Robert Brockman (CEO as of post-2006) |
| Products | ERA and POWER dealership management systems, AddOnAuto, docuPAD, business forms, consulting and training services |
| Parent | Universal Computer Systems (since 2006) |
The Reynolds and Reynolds Company operates as a privately held entity based in Dayton, Ohio. It focuses on providing business forms, management software, and specialized services tailored to automobile dealerships, offering software that optimizes sales operations. Additionally, the firm supplies forms for the healthcare and insurance industries.
Originating in 1866 as a printer of uniform business forms, Reynolds and Reynolds shifted toward digital solutions during the 1960s. This transition involved reducing its printing division while expanding its software portfolio. By the 1980s, the company had secured agreements with all of the Big Three automotive manufacturers as well as multiple insurance companies. Although it became a publicly traded company in 1961, it reverted to private ownership in 2006 after merging with Universal Computer Systems, an event that introduced challenges related to merging corporate cultures.
Founding and early development
In June 1866, Lucius Reynolds and James Gardner founded the company in Dayton, Ohio, initially naming it Reynolds and Gardner with a starting capital of $500. The business specialized in producing standardized documents using carbon copy technology.[1][2] One year later, Gardner sold his interest to Ira Reynolds, Lucius’s father, prompting a name change to Reynolds and Reynolds.[1][2] Following the deaths of Ira in 1880 and Lucius in 1913, leadership passed to Edwin Stanton Reynolds.[1]
The company won a contract in 1927 to supply business forms for Chevrolet dealerships.[1][2] Throughout the 1930s, it expanded nationwide, operating 19 sales offices by the decade’s conclusion.[2] In 1939, Richard Hallam Grant, Sr. acquired majority control and was appointed president in 1941,[1][2] marking the end of family ownership. Printing plants were established in Celina, Ohio (1948), Dallas, Texas (1953), and Los Angeles (1928).[1][2] The company went public in 1961.[2] The 1960s featured further growth with new printing facilities in North Hollywood (Los Angeles),[3] New Jersey, and Canada.[1] Entry into the Canadian market occurred in 1963 through acquisition of Windsor Office Supply’s automotive division, creating Reynolds and Reynolds (Canada) Ltd.[1][2] By the end of that decade, annual revenue neared $50 million.[1]
Software business development
Reynolds and Reynolds ventured into electronic accounting by purchasing a Boston-based accounting software company in 1960. Although their software division thrived during the 1970s, by the next decade its products had become obsolete due to limited data sharing capabilities and support for only single users per system. Each computer system was priced above $100,000. Despite growth within this division, overall revenues declined as demand for paper forms diminished. The acquisition of Arnold Corporation in 1986 increased revenues by 50% and broadened market exposure beyond automotive dealerships. David Holmes, who led the computer division, became CEO in 1989 and initiated major workforce reductions in printing operations, halving both employee numbers and manufacturing space. These changes faced employee opposition but resulted in improved profitability and revenue growth.
Following Holmes’s retirement, Lloyd G. "Buzz" Waterhouse—formerly with IBM—assumed the CEO role and launched an eBusiness division concentrating on internet-based technologies. In 2000, Reynolds acquired HAC Group, a provider of training, customer relationship management (CRM), and web services for retailers and manufacturers. The next year saw a partnership with CarsDirect.com to introduce CarsDirect Connect, an online vehicle purchasing platform. In November 2002, Reynolds purchased Networkcar Inc. (now Verizon Networkfleet) and developed CAReader—a telematics device that transmits vehicle mechanical data to dealerships. Networkcar was later sold to Hughes Telematics for $17.7 million in 2006.
Acquisitions and Growth
During the 1980s, Reynolds and Reynolds established contracts with all members of the Big Three automakers, prominent insurance companies, General Electric, and additional key clients. In 1986, the company expanded by acquiring National Medical Computer Services along with Arnold Corporation, a firm specializing in business forms. By the end of that year, Reynolds had surpassed $200 million in annual revenue, with business forms accounting for 42% of that total. Throughout the 1990s, Reynolds grew through the purchase of multiple smaller technology enterprises and by broadening its software portfolio. The acquisition of PD Medical Systems in 1994 led to the creation of Reynolds Healthcare Systems, which subsequently acquired Fiscal Information, a provider serving radiologists. Between 1994 and 1996, under the leadership of David Holmes, the company invested $155 million to obtain additional business forms and computer companies outside the automotive arena. By the year 2000, Reynolds reported revenues reaching $800 million, with over one-third of its users operating within General Motors dealerships. That same year, Reynolds divested its Information Solutions Group (ISG), which focused on non-automotive business forms and supplies, selling it to the Carlyle Group for $360 million.
On August 8, 2006, Reynolds transitioned into a private entity after being acquired by Houston-based Universal Computer Systems (UCS) for $2.8 billion. The combined organization controlled approximately 40% of the dealership management system market. Nevertheless, Automotive News highlighted significant cultural conflicts following the merger; for instance, the new CEO introduced policies such as prohibiting smoking and mandating annual physical examinations as prerequisites for health insurance eligibility.
Recent History
After merging with UCS, Robert Brockman assumed the role of CEO and instilled greater rigor into software development processes, resulting in modernized products with enhanced functionalities.
Beginning in 2007, Reynolds engaged in legal conflicts with General Motors (GM) concerning GM's Integrated Dealership Management System (GMIDMS). GM accused Reynolds of contract violations when it refused to implement requested software modifications. The dispute concluded in 2008 with a settlement that ended Reynolds' participation in GM's program.
In 2008, Reynolds expanded its portfolio by acquiring DiversiForm, a company specializing in printing dealership forms and documents. Later acquisitions included IMN, a newsletter publisher (2013); XtreamService, a provider of customer retention software (2013); and AddOnAuto (2014), which developed car accessory shopping applications. In 2017, Reynolds further grew by purchasing Xpressdocs, a marketing services firm catering to franchise organizations.
On February 14, 2020, Reynolds acquired GoMoto, a North American company developing self-service kiosk technologies for dealership check-in processes.
In October 2020, Brockman faced indictment on charges including money laundering and wire fraud linked to $2 billion in untaxed income held through offshore trusts. He entered a plea of not guilty and was released on bail.
Reynolds maintained its acquisition strategy by purchasing ReconTRAC® in December 2020—a web-based reconditioning software platform; Gubagoo in June 2021—a provider of conversational commerce and digital retail tools for dealerships and OEMs; and Proton Technologies in July 2022—specializing in cybersecurity and IT solutions tailored to automotive clients.
In early 2023, Reynolds acquired several companies: American Guardian Warranty Services, an F&I product and service provider; DealerCorp Solutions, a Canadian cloud-based dealership software company; AutoVision, a startup focused on improving used vehicle retail tools; and Xzilon, a manufacturer of protective coatings for vehicle interiors and exteriors.
Current software and services
Reynolds and Reynolds operates as a software developer and document printing provider, predominantly catering to the automotive sector. The company designs and distributes the ERA and POWER collections of automotive dealership management systems, which facilitate inventory control, financial accounting, contract documentation, and other operational processes. One of its products, AddOnAuto, enables visualization of vehicles equipped with various accessories, while docuPAD delivers a touchscreen platform allowing customers to examine sales documents and options interactively. Beyond software, Reynolds supplies printed business forms alongside consulting and training offerings. Although its primary focus remains on automotive dealerships, its software solutions and services also extend to industries such as healthcare and insurance. The firm’s customer support has received recognition including the STAR (Software Technical Assistance Recognition) Award from The Help Desk Institute. Reynolds ranks among the top three providers within the dealership management software industry.
Product history
Reynolds and Reynolds originated as a producer of standardized business forms utilizing carbon paper. By the 1940s, its operations were segmented into automotive, medical, customized forms, and Post-Rite Peg Boards divisions. The company introduced its first electronic accounting service in 1963. Its parts inventory management software, initially called Electronic Parts Inventory Control (EPIC), entered beta testing in 1966 and was renamed RAPIC upon official release the following year. Subsequently, it launched additional software including LEASe for accounting and an accounts receivable system.
In the early stages, clients transmitted hole-punched accounting cards to Reynolds’ processing facilities, which generated comprehensive accounting reports that were mailed back. The emergence of modem and internet technologies during the 1970s brought significant innovation: between 1974 and 1978, Reynolds distributed 3,600 specialized modems to dealerships. These devices connected to Reynolds’ VIM-branded minicomputers located at 80 sites, offering computational resources alongside printed forms. This advancement eliminated the need for physical data transfers and enabled daily online access to information. By the late 1970s, batch processing centers were phased out as dealerships transitioned to personal computers. From 1978 through 1982, Reynolds introduced VIM-branded computer systems installed directly within dealerships.
By 1986, dealer management systems based on VIM technology commanded a 45% market share with approximately 9,000 installations spanning five generations. In 1987, Reynolds transitioned its focus toward software through the introduction of ERA dealer management software—a full rewrite that empowered users to oversee sales, finance, service, and parts operations across multiple departments. That same year marked the debut of a digital graphical parts catalog designed for automotive parts ordering, followed by tools such as Vehicle Locators and Marketing Network sales applications.
By 1997, Reynolds had expanded its portfolio to over 30 applications addressing diverse dealership functions. In 2000, it entered into a joint venture with Automatic Data Processing and CCC Information Services to establish ChoiceParts—a web-based network facilitating dealer-to-dealer parts transactions.
In 2002, Reynolds announced its migration from Unix to Windows-based core software—a decision that generated considerable discussion within the automotive community. While the Unix platform supported a larger user base, Windows provided enhanced compatibility with emerging dealership applications. Additionally, Reynolds collaborated with Microsoft to develop the Generations Series Suite; however, this product was discontinued in 2005 due to underwhelming market reception.
In 2011, Reynolds introduced ERA-IGNITE, its current iteration of dealer management software that streamlined user workflows by reducing task screens by approximately two-thirds.
In 2024, Reynolds and Reynolds discontinued its digital advertising service offerings.