Genstar Capital, a US-based private equity firm, is reportedly exploring the sale of OEConnection, an automotive software company. Sources indicate that the potential sale could value the company at up to $5 billion, including debt. The sale process is expected to begin later this year, with Evercore serving as the advisory firm for Genstar.

Genstar Capital has not publicly commented on the sale, and representatives from Evercore and OEConnection were unavailable for immediate remarks. Genstar acquired OEConnection in 2019 from Providence Equity, with Ford and General Motors retaining minority stakes in the company as part of the deal.

Insiders suggest that OEConnection could achieve a valuation exceeding 20 times its earnings before interest, taxes, depreciation, and amortization (EBITDA). Founded in 2000 and based in Ohio, OEConnection specializes in software systems that facilitate the sale and distribution of original equipment manufacturer (OEM) replacement parts. These systems are utilized by dealerships, suppliers, and repair shops to enhance operational efficiency.

OEConnection reportedly has an EBITDA of $200 million and annual revenues of approximately $400 million. The company launched CollisionLink in 2001, an online tool that allows repair shops to purchase OEM parts from dealership inventories. This was followed by the introduction of D2DLink, which connected dealers nationwide and expanded the OEC dealer network from 500 to 10,000.

Genstar Capital, established in 1988, has over three decades of experience in investing in high-quality companies. With nearly $50 billion in assets under management, the firm focuses on specific sectors, including financial services, software, industrials, and healthcare.