Bridgestone invests $3 million in Halfords’ Avayler system

Bridgestone has invested US$3 million dollars in buying a 5 per cent stake in Halfords Group Plc’s Avayler Software as a service (SaaS) business. The investment therefore values the two-year-old Avayler business at $60 million. Under the associated commercial agreement, which has an initial term of 15 years notwithstanding certain break clauses, Avayler will provide Bridgestone with access to Avayler’s in-garage and van software products as well as certain services to facilitate Bridgestone’s use of it. These include services relating to maintenance, development, implementation and support. The commercial agreement provides for the roll-out of Avayler’s products across Bridgestone’s retail and van operation in the USA.

As part of the deal, Halfords, Avayler Holdings, Avayler and Bridgestone have also entered into a shareholders’ agreement in relation to Avayler. The shareholders’ agreement affords Bridgestone certain minority shareholder protections, including the right to compel Avayler Holdings to purchase all of Bridgestone’s shares in Avayler if certain events occur. If that right is exercised by Bridgestone, the price payable by Avayler Holdings (the “put option price” as it is known) for Bridgestone’s shares in Avayler will be driven by Avayler’s financial performance at the time of exercise and can (at Avayler Holdings’ election) be settled in cash or in Halfords shares. Halfords has guaranteed Avayler Holdings’ obligation to pay the Put Option Price to Bridgestone.

Avayler was developed in-house by Halfords to manage automotive services across its expansive garage network and increasing number of mobile vans. It offers an integrated solution that “allows automotive companies operating in multiple locations to develop competitive edge by delivering a vastly superior customer experience” according to the company.

Halfords doesn’t believe the Avayler platform has a direct equivalent on the market today. As well as streamlining customer bookings online, over the phone and instore, and job execution inside the garage, its mobile capability uses algorithms to instantly calculate the available customer time slots according to the nearest van location and parts availability.

In addition, the Avayler platform uses dynamic pricing to value those slots. Automotive service providers can calculate the cheapest and quickest routes to a customer; maximise colleague productivity on the job; give details of traffic on the road; and provide a colleague with detailed checklists to ensure a safe and consistent service is provided. Customers can even track the location and ETA of their service delivery.

This Bridgestone investment follows the acquisition of Avayler’s first customer in the USA – American Tire Distributors Inc (ATD). ATD is one of the largest independent suppliers of tyres to the replacement tyre market in North America. Since then, Avayler has won contracts with operators around the globe, including Tirebuyer in the US and Mobivia in Europe.

“…Today’s investment from Bridgestone, one of the world’s largest mobility companies with over 3,000 garages and vans under its world-wide operation, is another fantastic endorsement for the platform, and the length and scope of the agreement fuels our confidence in Avayler’s long-term potential as we continue to roll it out to more clients around the world,” said Graham Stapleton, chief executive officer of Halford, adding: “As well as becoming shareholder in Avayler, Bridgestone will also deploy Avayler solutions to support its own mobility solutions and applications for drivers, fleet managers, and vehicle owners.”

As of 31 March 2023, Avayler had gross assets of £3,054,618, and generated a loss of £74,662 in the financial year ending March 2023.