Deerfield Beach, FL – March 29, 2022
Dealer Services Network (“DSN”) today announced a recapitalization in partnership with Frontenac, a Chicago-based private equity firm. Financial terms of the transaction were not disclosed.
DSN is a technology-enabled platform that automates and streamlines the title, registration and compliance processes for mobility companies and consumers alike. Its proprietary DealTracker™ platform delivers TaaS™ (Title as a Service), workflow, content management and compliance solutions. DSN serves industry participants including automotive dealers, rental car companies and other fleet operators, consumers and governmental agencies. The Company and Frontenac will utilize this partnership to accelerate DSN’s expansion into new markets across the U.S. while leveraging its core strengths of innovative technology, superior customer service and operational excellence.
Jason Strochak, Chairman of DSN, said, “As a third-generation family-owned business, DSN’s motto since 1955 has been to consistently create and evolve groundbreaking, cutting-edge solutions for our customers and our public sector relationships. Joining forces with Frontenac as our partner enables our collective vision of expanding our automotive TaaS™ platform alongside our outstanding people, processes and technology infrastructure.”
Joe Palumbo, CEO of DSN, commented, "We are thrilled about this partnership, which creates an opportunity to bring DSN’s suite of title, registration and compliance solutions to dealers, fleet operators and other industry players across the United States. Both DSN and Frontenac are aligned on the priorities that matter most – our people, our customers and our commitment to delivering successful outcomes for all stakeholders.”
DSN recognized Frontenac and its executive-centric approach to be an ideal fit as the Company looked for the right partner to help expand its business. Joining the Board of Directors at closing is industry veteran Bob Karp, who has over 25 years of experience growing technology-enabled businesses, including as the former President of CDK Global North America.
Karp commented, “DSN has built an impressive business that combines technology, superior customer service and continuous improvement to address its customers’ operational pain points. We believe DSN’s strong presence in both franchise and independent dealerships across several U.S. states positions it well to benefit from the continuing trend of dealership consolidation and the increasing needs to process out-of-state titles.”
Complementing Karp on the Board of Directors is Ron Frey, who has deep automotive strategic expertise and specializes in automotive innovation and technology. Ron formerly served as the Chief Strategy Officer at AutoNation and the Global Strategy Officer at CDK Global.
“DSN fits well with Frontenac’s strategy of partnering with and growing best-in-class, tech-enabled services companies alongside extraordinary leadership teams,” said Michael Langdon, Managing Director at Frontenac. “DSN is a compelling partner based on its high value-added service offering and longstanding industry relationships alongside a dedicated team of employees and vibrant culture. Together with Jason, Joe, Bob and Ron, we see substantial white space in the industry. We are excited to support management by investing in strategic organic growth initiatives and increasing scale via acquisition.”
Presidio Technology Partners served as financial advisor to Dealer Services Network. Cowen | Portico served as financial advisor to Frontenac. Bryn Law Group served as legal counsel to DSN. Honigman LLP and GrayRobinson, P.A. served as legal counsel to Frontenac.
About Dealer Services Network
Dealer Services Network is a technology-enabled platform that automates and streamlines the title, registration and compliance processes for mobility companies and consumers. Its proprietary DealTracker™ platform delivers TaaS™ (Title as a Service), workflow, content management and compliance solutions. DSN’s TitlePro and DocuPro services provide its customers with registration and title services, outsourced title clerk capabilities, document workflow, scanning and cloud storage, and compliance tools. DSN serves over 700 automotive dealerships and processes over 1 million customer transactions annually across several U.S. states. For more information, please visit dsn.net.
Frontenac is a Chicago-based private equity firm. The firm focuses on investing in lower middle market buyout transactions in the consumer, industrial, and services industries. Frontenac works in partnership with established operating leaders, through an executive-centric approach called CEO1ST, which seeks to identify, acquire, and build market-leading companies through transformational acquisitions and operational excellence. Over the last 50+ years, Frontenac has built a leading franchise working with over 275 owners of mid-sized businesses as they address complex transition issues of liquidity, management enhancement, and growth planning. For more information, please visit frontenac.com.