ARI (OTCBB:ARIS), which provides technology-enabled business solutions that connect equipment dealers, distributors and manufacturers, announced June 10 that it had acquired the assets of Powersports Outsourcing Group, LLC (PSOG). The acquisition was completed on April 17 by ARI F&I Services, LLC (AFIS), a wholly owned subsidiary of ARI, by obtaining the assets of PSOG in partial satisfaction of its debt to ARI. They will offer a suite of finance and insurance (F&I) products and services under the name F&I Smart to ARI’s thousands of customers in the power sports, marine, recreation vehicles, outdoor power and other markets.
PSOG, located in Schenectady, N.Y., and led by Mark L. Taylor, has been offering outsourced F&I services to power sports, marine and RV customers in the Northeast U.S. since 1998. These services include assisting dealers’ customers to obtain financing, as well as providing them with Extended Service Agreements, Gap Insurance, Tire & Wheel Protection, and other after-sale products.
“We believe offering F&I products and services represents a significant and extremely important new opportunity for ARI to help our customers improve their revenue and profitability,” said Roy W. Olivier, ARI’s president and chief executive officer. “Small- and mid-sized dealers in the power sports market have a demonstrated need for these services. According to a survey reported by PowerSports Business, 52.8 percent of motorcycle buyers obtain financing, yet many dealers do not have the opportunity to offer finance options. PowerSports Business also reports that some dealers are obtaining $500 to $1,000 in additional revenue per unit sold with after-sale F&I products. Over 1.8 million new power sports units are sold every year, so the revenue potential –- for both our dealer partners and ARI — seems to be very strong. The marine and RV markets indicate the same type of need.”
Initially, ARI will continue to focus on power sports, marine and RV dealerships that do not have a full-time, in-house F&I department. F&I Smart will act as the dealers’ outsourced F&I department, dealing directly with their customers to obtain financing and to present various F&I product options, in close collaboration with the dealers’ on-site personnel, ultimately providing the dealer with the appropriate agreements for the buyer’s signature.
“I am very excited about joining ARI and heading up this new F&I business unit,” said Taylor. “ARI has the resources and customer base to drive rapid and significant growth in our F&I business, both geographically and by industry sector.”
Olivier added, “Our mission statement is to be recognized as the leader in providing the best solutions that enhance revenue and reduce costs for our customers. F&I Smart, offering our dealer customers increased revenue opportunities with no incremental fixed cost, fits this goal very well.”
For more information on ARI, visit www.arinet.com or www.channelblade.com.