Thomson Snell & Passmore advises on sale

Evolution Funding Group Limited, a prominent automotive finance and digital commerce platform, has acquired Automotive Compliance Limited, a respected provider of FCA-regulated compliance services in the automotive industry, pending regulatory approval. Thomson Snell & Passmore provided legal advice to the shareholders of Automotive Compliance during this important transaction.

Founded in 2008 and located in Gloucester, Automotive Compliance has established itself as a key player in the UK’s automotive compliance market, focusing on delivering high-quality compliance services and systems to motor retailers. This reputable firm offers extensive support to various dealerships by providing regulatory oversight, governance frameworks, and innovative compliance technology. Its strong brand and expertise have made it a trusted partner for many in the sector.

On the other hand, Evolution Funding Group Limited, which was formed in 2002, stands as the UK’s largest platform for automotive finance and digital commerce. The company connects dealers, original equipment manufacturers (OEMs), marketplaces, and lenders, and is supported by Carlyle, a leading private equity firm. Evolution encompasses several brands, including Evolution Funding, Click Dealer, Motion Finance, and Creditas.

As part of the acquisition deal, Automotive Compliance will continue to operate as an independent legal entity within the Evolution Group. This structure will allow the existing leadership team to remain in place, ensuring that customers, partners, and staff experience a smooth transition during the integration period. Evolution Group has plans to further invest in Automotive Compliance to enhance its systems, expand its services, and fuel growth among independent retailers, franchised dealer groups, OEMs, and digital marketplaces.

Commenting on the acquisition, Paul Speakman, director at Automotive Compliance, shared his enthusiasm, stating “Joining the Evolution Funding Group is an exciting step for Automotive Compliance. We’ve spent many years building a trusted, respected compliance service for dealers, and this partnership allows us to take that to the next level." He added that Evolution’s resources would provide their team with new avenues for growth and innovation.

Paul Guy, another director at Automotive Compliance, echoed these sentiments: “Our goal has always been to make compliance clear, effective, and aligned to the realities of motor retail. Becoming part of Evolution allows us to strengthen that work with more scale, better tools, and wider capability behind us whilst playing a central role in the Group’s vision for integrated, compliant dealer and consumer journeys.”

At Thomson Snell & Passmore, Jason Varney, a Partner in the Corporate M&A department, led the transaction team. He expressed pride in the deal, stating “This deal was great to work on and highlights the breadth and strength of our Corporate M&A team and our wider commercial group; as well as our expertise in PE backed transactions and the automotive industry.” He wished the Automotive Compliance team continued success as they embark on this new chapter under Evolution Funding Group.