AdSpace4

Collapse

Announcement

Collapse
No announcement yet.

LYNX, GLAXIS, GTS SOLD! Solera Acquires Claims Assets

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • LYNX, GLAXIS, GTS SOLD! Solera Acquires Claims Assets

    Solera Holdings, Inc. to Acquire Insurance and Services Division of Pittsburgh Glass Works, LLC; Acquisition Will Establish the Only Comprehensive Automobile Repair and Claims Management Platform in the U.S. Market

    "Through its three primary brands, LYNX Services, GTS Services, and GLAXIS™, I&S leverages proprietary technologies, leading administration services, and the nation's largest network of independently-owned automotive glass retailers and installers to deliver a highly differentiated, end-to-end glass claims management platform. Currently serving 10 of the top 20 U.S. property and casualty insurers, LYNX Services' suite of full-service claims management solutions combines essential data, software and analytics tools to improve processing effectiveness and drive repair cost savings for auto and property claims. I&S' GLAXIS electronic hub and GTS Services' integrated supply chain management offerings streamline scheduling, dispatch and inventory management operations throughout the glass repair value chain."

    READ MORE

  • #2
    Well this is going to get interesting. We have discussed Solera before on this forum in regards to claims management and their involvement in the collision repair industry. One thing is for sure, Safelite is up against a giant now and this should bode well for independent glass shops.

    I'll write more on this shortly so come back soon!
    Best Regards,

    Comment


    • #3
      Now this is interesting...as far as boding well for independent glass shops, time will tell.
      As one wise man once told me, "You just can't make this **** up."

      Comment


      • #4
        Originally posted by Rocker View Post
        Now this is interesting...as far as boding well for independent glass shops, time will tell.
        As one wise man once told me, "You just can't make this **** up."
        I am very familiar with Solera Holdings and their CEO and Founder Tony Aquila. Long story short, Tony had acquired technology I created (EazyImage/ionConnection) back in 1999/2000 through a company he founded called EngineRoar which later became Ensera. During this time, Tony assembled talent from ADP Claims Services Group, Mitchell International, and CCC Information Systems. In September of 2001, Mitchell acquired Ensera. I became involved in the auto glass industry in November of 2001 while Tony became Executive Vice President of Mitchell with the intent on becoming the CEO shortly thereafter. Sadly, Tony only made it to COO. Mitchell could have been a much different company had he become CEO.

        Things did not go as planned and Tony left Mitchell but only after trying to purchase Mitchell. After he left, he formed Solera and assembled a team including former Safelite CEO Garen Staglin who also served as Chairman of ADP. This team not only raised a billion dollars, they purchased ADP Claims Service Group for $975 million in cash and renamed it Audatex.

        Since then, Tony and his team have built a worldwide claims and technology power house.

        I would venture to say that Solera Holdings has more power and connections with insurance companies than Belron/Safelite will ever have. Sure, these relationships may not seem good on the surface but the one thing I have come to know of Tony is that he also is a champion of the independent retailers who perform the work.

        Only time will tell what Tony has planned but I would be to say that our industry is about to have an 800 gallon bucket of ice cold water thrown across its face.

        By the way:
        Solera Holdings Stock price: SLH (NYSE) $67.20
        D'Ieteren SA Stock price: DIE (EBR) €32.35 or approximately $45 USD

        Belron's parent company is not a claims or technology power house so factor that in and Solera is the new 800lb gorilla.
        Best Regards,

        Comment


        • #5
          I'm sorry Gary, but i fail to find any reason for your exuberance. I understand your personal connection although Lynx will still be Lynx, and the dollar will be the bottom line. I trust you know what you are talking about, when talking about the world becoming different. Please illuminate me on how this will end steering, pricing woes, and the like? Experience has shown computer programs are the chains of the master, without that technology none of the steering would be possible. In the envelope and stamp days, we were paid quicker, and we never knew what a short pay was; they (short pays) hadn't been invented yet. If this company has purchased programs from you in the past and you had hopes of them making you rich, i say congratulations. I just am not smart enough to understand how this will solve the industry issues.
          Last edited by Icarus; 05-13-2014, 04:57 AM.

          Comment


          • #6
            I am no expert, but from what I understand, Tony is a pawn and Gary Staglin is the venomous snake in the grass that has the money and power connections. Staglin is the one that was the driving force that made Safelite solutions what it is today.

            Comment


            • #7
              Originally posted by Icarus View Post
              I'm sorry Gary, but i fail to find any reason for your exuberance. I understand your personal connection although Lynx will still be Lynx, and the dollar will be the bottom line. I trust you know what you are talking about, when talking about the world becoming different. Please illuminate me on how this will end steering, pricing woes, and the like? Experience has shown computer programs are the chains of the master, without that technology none of the steering would be possible. In the envelope and stamp days, we were paid quicker, and we never knew what a short pay was; they (short pays) hadn't been invented yet. If this company has purchased programs from you in the past and you had hopes of them making you rich, i say congratulations. I just am not smart enough to understand how this will solve the industry issues.
              My exuberance is that Belron/Safelite is no longer the only player. For the last 7 years, Safelite has taken the position in the US of taking claims away from LYNX Services. That should stop now and go the other way. Sure, the "network" may still be the same after the dust settles or maybe it will not. Solera and Tony have a much different view of things compared to the old guard. Technology never made steering happen, people did. Once the right "script" was created and glass shops signed network agreements, it was all downhill from there.

              Paid quicker with a stamp and envelope? Most shops are paid, electronically, within 72 hours of submitting an invoice (unless it happens over a weekend).

              This acquisition is important because it will legitimize and allow and independent platform to rise between these two towers (SL/LYNX) and force insurers to demand better accountability. I have no crystal ball and I can only look at what other industries have gone through when events like this happen. I can tell you for certain that there is a big difference in corporate governance between the two and if I had to bet on a better industry partner going forward, it would be something that Tony touches.

              I'm not sure how Tony is a pawn and I believe Garen exited Solera many years ago.
              Best Regards,

              Comment


              • #8
                Could this be an avenue for the IGA's Electronic ANSI standard project?

                Comment


                • #9
                  Originally posted by Rocker View Post
                  Could this be an avenue for the IGA's Electronic ANSI standard project?
                  It certainly will help.
                  Best Regards,

                  Comment


                  • #10
                    So this sounds like its about about computer software? Maybe a victory for computer experts, more of the same for shop woes?

                    Comment


                    • #11
                      Originally posted by Icarus View Post
                      So this sounds like its about about computer software? Maybe a victory for computer experts, more of the same for shop woes?
                      It is far from computer software and more about all things claims (processing, handling, etc.)! We are all aware of how horrible the notice of loss process is with all of the networks in the industry, LYNX Services included. Solera will be in a position to turn this around with LYNX and create a far better experience for glass shops and insurers, in my opinion.

                      They may be late to the game though because companies like eDirectGlass, through their ClaimsVerse platform, are currently providing transparent notice of loss, virtual inspection, and more. The IGA is leveraging the ClaimsVerse technology and will shortly be announcing something very big for the industry.

                      Comment


                      • #12
                        Interesting Deal

                        Originally posted by Administrator View Post
                        It is far from computer software and more about all things claims (processing, handling, etc.)! We are all aware of how horrible the notice of loss process is with all of the networks in the industry, LYNX Services included. Solera will be in a position to turn this around with LYNX and create a far better experience for glass shops and insurers, in my opinion.

                        They may be late to the game though because companies like eDirectGlass, through their ClaimsVerse platform, are currently providing transparent notice of loss, virtual inspection, and more. The IGA is leveraging the ClaimsVerse technology and will shortly be announcing something very big for the industry.
                        I think Gary is on point with the "big" part of his analysis. Two things make it pretty clear this is going to be a big deal

                        1) Solera will not be bound by the same challenges that PGW had. Claims management and software is their core business and the vertical integration surrounding the channels and cradle to grave solution they will present will be squarely within their own core. PGW was primarly a glass business, that dealt in software and claims management. This undoubtedly created challenges, where what was "good" for one, was not necessarily good for the other and therefore went undone.
                        2) Solera paid a BOATLOAD of money for this business. 5x revenue and almost 11x earnings in anything related to the glass business is unheard of. Better believe that they see a big upside. Logically, a big part of that should come from other players as glass claims are a fairly fixed quantity, but a large part of this has to be connected to tying together products they already have and presenting a complete picture for fnol, software, etc..

                        Comment


                        • #13
                          Glad to see you here DL, now that you are no longer on the dark side. You always have a big picture view and can articulate it for the commoner. Still not sensing a difference for the shops. Easier first notice of loss sounds nice, but steering is steering, only the string pullers have changed. Can you narrow the focus from the big picture and tell me how this will help shops make ends meet?

                          Comment


                          • #14
                            Originally posted by Icarus View Post
                            Glad to see you here DL, now that you are no longer on the dark side. You always have a big picture view and can articulate it for the commoner. Still not sensing a difference for the shops. Easier first notice of loss sounds nice, but steering is steering, only the string pullers have changed. Can you narrow the focus from the big picture and tell me how this will help shops make ends meet?
                            I'll take a stab at boiling it down. First of all, LYNX Services doesn't have the means to "steer" in the sense that Safelite Solutions does. It is possible that LYNX could deliver a means to allow the insured and/or the glass shop to electronically report the claim and obtain authorization without speaking to a CSR. So, if LYNX was to create a pseudo glass retailer network, the insured would basically not have any shop in mind and the system would present them with a list to choose from.

                            Since Solera have contracts with over half of the top fifty insurers, which some presently have auto glass claims agreement with Safelite Solutions, those will likely go to LYNX now at the renewal period. Safelite has no compelling offer with other lines such as collision, property, etc. to offer up consolidation so LYNX would win these over by default.

                            What is to be seen and what was not disclosed is what relationship going forward will PGW have with the new LYNX. Will there be a supplier program for LYNX claims that can be levered?

                            To predict what the end result financially speaking for a shop to expect is difficult. There is a very good possibility that discounts would be lowered in order to meet certain quality and safety goals that the insurer would be expecting. What is that discount difference, we may see O&A in the 25-35% range with $125 flat labor. Again, these are just guesses and are speculative.

                            Beyond LYNX, shops can make ends meet by doing many other things that are not related to how much compensation the networks/insures provide. From direct bill, to short-pay, through invoking appraisal rights, shops have many options to be fairly compensated.

                            I hope this helps clear this up a bit for everyone.
                            Best Regards,

                            Comment


                            • #15
                              I think it is too early to tell. Gary very well could be dead on, but I can't really speculate. The fact that Solera has made such a large investment means they will have to grow the business to justify the spend; that to me doesn't bode as an advantage from a glass standpoint - Insurers will write the checks and there is a possibility that price leverage will be a tool they use to draw the business away from other networks. From a positive standpoint, if Solera is able to grow the Lynx insuror base, it follows that since they have no pressure to sell an integrated (service) model, more of the contracts could run on a more open platform. I would guess they would have to have a model for companies that want an aggressive utilization rate on their program, like many companies currently using the other major TPA, but they will be forced to go to the open market to build the army, or open it up fully to national players. Either way, this will not be done in a vacuum and for every action, the competition will respond....look for more agressive D2C marketing if Solera is able to make a dent. My advice, as pretty much always, is to continue to build your brand and become the known choice for your market area. ... JMO.

                              Comment

                              Working...
                              X