The move follows this month's surprise merger with Texas based Universal Computer Systems, the parent company of Kalamazoo, in a $2.8bn (£1.47bn) deal which makes the combined company the world's biggest DMS provider.
The transaction is subject to approval by Reynolds' shareholders and regulatory clearances but it has been confirmed that the combined company will operate under the Reynolds & Reynolds banner and the UCS brand will be discontinued.
The merger follows the company's £21.7m ($41m) acquisition of the Leamington Spa based DMS vendor DCS Automotive in May this year which provided it with its first foothold in the UK and expanded its fledgling continental European business with customers in Germany, France, Switzerland and Spain.
DCS serves 4,500 dealers across Europe and its
UK customers include Hendy Group and Guest Motors.
Speaking exclusively to Motor Trader last week Bob Sawyer, the general manager of Reynolds' European operations, said the two acquisitions would make the vendor a major force in the UK dealer systems sector.
“The UCS deal enhances our position dramatically and will put us in a lead position in DMS globally,” he said.
“It makes us much more competitive size wise in the UK and will effectively create a duopoly similar to the one we have in the US with ADP.”
The stage is set for the two US giants to fight for market share in the UK as ADP acquired Kerridge, the UK DMS supplier, in a £173m cash deal in December with the US vendor attracted by its offerings in the commercial distribution and wholesale market places.
Sawyer said the UK had been specifically targeted as an area for growth and confirmed some DCS products would be considered for other markets.
“The UK is the most sophisticated market in Europe in terms of the demands on reporting capabilities. If you can satisfy that market then you can roll it out elsewhere,” he said.
With the DCS deal only completed at the end of last month Sawyer said Reynolds is currently holding management discussions on its European operations and expects to formalise them by the beginning of October to coincide with the start of the US company's financial year.
“We're just getting under the covers at DCS and now have another 30 days or so to sort out our organisational structure before the beginning of our fiscal year.
“We see huge potential in the UK – in Europe Reynolds is currently number one in France and number two in Germany and we would like to have the same sort of focus in the UK,” he said.
l See comment on page 2.

US DMS firms in the UK
l December 2005 US company ADP acquired Kerridge, the UK based DMS vendor
l May 2006 Reynolds & Reynolds acquired DCS Automotive, the UK based DMS vendor
l August 2006 Reynolds & Reynolds merges with DCS, the US owner of UK based Kalamazoo