Solera (SLRA) Ought To Sell Its Fleet Business. SPGI Ought To Acquire SLRA.

The best way for Solera (SLRA) to boost its credit rating would be to sell its Fleet Solutions business ($183 million of Adj. EBITDA in FY’24).

• Fleet Solutions revenues have declined. Perhaps the business unit would capture a 10-12x EBITDA multiple in a sale. Proceeds should be used to pay down debt.

• If I am S&P Global (SPGI), I am taking a hard look at SLRA and thinking about combining it with IHS.

• See our detailed SLRA note HERE.

---