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FTC Orders Solera to Sell Actual Systems

Order Reprints

July 24, 2013—The Federal Trade Commission (FTC) this week issued an order requiring Solera Holdings Inc., a software provider for the automotive recycling industry, to divest assets to resolve FTC charges that Solera’s 2012 purchase of rival Actual Systems of America Inc. was anticompetitive.

Solera will sell the U.S. and Canadian yard management systems (YMS) software business that it acquired from Actual Systems to ASA Holdings Inc. as part of the settlement.

According to the FTC, Solera and Actual Systems were two of the three leading providers of YMS in the North American market. Solera acquired all of the stock of Actual Systems in an agreement reached in May 2012.

The FTC said Solera’s acquisition of Actual Systems was anticompetitive and violated federal antitrust laws. The FTC’s complaint alleges the acquisition significantly harmed the market for YMS, which was already highly concentrated. Combining the two firms eliminated direct and substantial competition between Solera and Actual Systems. The FTC said that could have reduced innovation for YMS and lead to higher prices for automotive recycling industry customers.

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