3) Facing Issues

Despite a busy acquisition spree, Solera began encountering headwinds by 2015. The company's core business - software for car insurance claims - was stagnating. Revenue growth slowed to the low single digits, while margins deteriorated rapidly.

Net income margin fell from 13% in 2013 to -7% in 2015. Analysts pointed to an overextension into unrelated areas and a failure to integrate acquisitions effectively. In late August 2015, Solera announced it was exploring strategic alternatives and formed a special committee with Centerview Partners and Rothschild advising.

The market interpreted this as a sign of distress, and share prices fell. By then, public market investors had grown wary of Solera's aggressive acquisition strategy and deteriorating profitability.