J.D. Power Announces Agreement to Acquire NADA Used Car Guide From the National Automobile Dealers Association

WESTLAKE VILLAGE, CA -- May 28, 2015: J.D. Power and the National Automobile Dealers Association (NADA) today announced an agreement under which J.D. Power will acquire NADA's Used Car Guide business, a premier source of used-vehicle values. The transaction is expected to close early in the third quarter of 2015 and is subject to Hart–Scott–Rodino Act review.

Established by NADA in 1933, NADA Used Car Guide is a leading provider of U.S. retail, loan, trade-in and auction used-vehicle values, and is widely recognized in the industry as the authority for accurate and comprehensive used-vehicle valuation information. The company will remain based in the McLean, Virginia, vicinity where it serves more than 100,000 subscribing clients, including retailers, financial institutions, insurers and software providers.

J.D. Power is a global marketing information services company known for using the voice of the customer to create reviews and ratings which measure the shopping, purchase and ownership experience across a wide range of brands and products. The Power Information Network® (PIN) from J.D. Power provides real-time automotive information and decision-support tools based on the collection of daily new- and used-vehicle retail transactions.

The agreement brings together PIN, which combines advanced analytics of new- and used-vehicle retail sales and pricing data, with the complementary and extensive knowledge, expertise and market presence of the NADA Used Car Guide, thereby expanding J.D. Power's analytical and modeling capabilities into new product offerings, deepening its presence in auto finance and auto insurance, and enriching retail solutions.

"J.D. Power has built its strong brand through analytics, data and its growing benchmark business. Benchmarks are a key to the McGraw Hill Financial business model and the NADA Used Car Guide adds a unique set of valuations, which are used as benchmarks by customers, to the well-respected J.D. Power portfolio," said Douglas L. Peterson, president and chief executive officer of McGraw Hill Financial. "We see clear opportunities for both revenue and cost synergies as J.D. Power couples NADA Used Car Guide with the real-time automotive capabilities of the Power Information Network® (PIN) to bring value to a broad set of customers. This is another example of McGraw Hill Financial utilizing an attractive tuck-in acquisition to expand the capabilities of the company's iconic businesses."

"This deal is a perfect fit for dealers and NADA Used Car Guide customers. Under terms of the deal, NADA members will continue to receive a subscription to the Guide as a membership benefit," said Peter Welch, president of NADA. "NADA and J.D. Power will continue to build upon our longstanding alliance by sharing data and insights, and bringing together retailers and leaders from the automakers, suppliers and the media at co-hosted conferences and events, offering thought leadership and solutions directly benefiting the retailer network and overall automotive industry."

"We are thrilled to add the NADA Used Car Guide and its vehicle valuation capabilities to J.D. Power," said Finbarr O'Neill, president of J.D. Power. "NADA Used Car Guide analytical solutions will perfectly complement PIN's expertise in new- and used-vehicle retail and pricing services, and we will gain an impressive array of integrated vehicle valuation solutions. The Guide's high integrity and unbiased approach to used-vehicle values, analytics and insights fits perfectly with J.D. Power's reputation as a trusted advisor to the automotive industry."

"This is an exciting opportunity for Used Car Guide to take advantage of great synergies with JD Power," said Mike Stanton, vice president and chief operating officer of the NADA Used Car Guide. "On its own, the NADA Used Car Guide provided the best data available on used-car pricing. But now, our customers will benefit from a seamless view of new- and used-vehicle price information with both companies under the umbrella of the J.D. Power brand."

The NADA Used Car Guide name will be used by J.D. Power for a period of time before transitioning to the J.D. Power brand.