Francisco Partners buys majority of OEConnection to scale

Francisco Partners has agreed to acquire a majority interest in OEConnection (OEC), the US-based provider of software and data that underpins the automotive aftersales chain. The deal — struck with existing backer Genstar Capital — marks another move by a technology-focused private equity group into platforms that digitise industrial and mobility value chains.

Built in 2000 as a collaboration between Ford and General Motors, OEConnection supplies the systems that link manufacturers, dealership networks and repair facilities. The company currently spans six countries, employs about 1,500 people and supports a network including 45 manufacturers, roughly 30,000 dealerships and some 135,000 wholesale customers worldwide.

OEC’s platform focuses on parts distribution, repair workflow and shared data services that reduce lead times and improve parts accuracy — capabilities that have become more valuable as the sector shifts to higher data-intensity operations. Patrick Brown, OEC’s chief executive, said the transaction will accelerate the company’s roadmap and expand services across collision and mechanical repair segments.

From the buyer’s perspective, Petri Oksanen, a partner at Francisco Partners, framed the acquisition as a response to a structural change in automotive supply chains. He said the firm sees OEC as a central connectivity layer that can raise efficiency and margin throughout the aftermarket. Francisco Partners, which has backed hundreds of technology businesses and raised more than $50bn in capital, has been particularly active in software and services that modernise legacy industries.

Analysts estimate the global automotive aftermarket and related software segments are expanding at mid‑to‑high single digit annual rates as digitisation, ecommerce and more complex parts requirements converge. At the same time, the shift to electrified drivetrains and connected vehicles is reshaping service patterns — creating both disruption and opportunity for platforms that can orchestrate parts logistics and repair workflows at scale.

Genstar — which invested in OEC in 2016 — will retain a minority position alongside legacy OEM shareholders, including Ford and General Motors, who remain stakeholders in the business. Financial and legal advisers on the transaction included Evercore and Ropes & Gray for Genstar, with Citi, TD Securities and law firm Paul Hastings advising Francisco Partners.

For the market, the deal signals continued consolidation and fresh private capital directed at aftermarket digital infrastructure. Expect Francisco Partners to pursue further product investment and potentially tuck‑in acquisitions to broaden OEC’s data services and international reach. For dealers, OEMs and independent repair shops, deeper platform integration could translate into faster parts flows and tighter inventory control — but also increased reliance on a handful of specialist software providers as the sector digitalises.