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Friday, 25 January 2013
UPDATE: DealNet Capital's One Dealer unit inks joint marketing deal with "large" North American HVAC distributor
DealNet Capital Corp. (CNSX:DLS) says that its One Dealer subsidiary has signed a preliminary deal for a joint marketing program with an undisclosed "large" North American heating, ventilation and air conditioning (HVAC) distributor.
DealNet, previously called GameCorp, recently transitioned from the gaming industry to HVAC financing and services, water heater rentals and business process outsourcing (BPO), with the infrastructure of the BPO business underpinning the HVAC delivery platform.
Its One Dealer business is designed to provide end-to-end customer management and financing services to the HVAC industry through a network of HVAC dealers. The subsidiary is launching a full suite of financing and rental programs, logistical support, customer services, wholesale product supply and home protection plans for independent HVAC dealers and their customers in North America.
Through One Dealer, DealNet said it plans to bring together more than 80,000 small and intermediate-sized dealers in the North American HVAC and water heater rental industry under one umbrella.
The business is expected to help these dealers provide a better customer experience by leveraging fractional call center time through the BPO unit, and at the same time "authorize and encourage them to sell DealNet’s finance products and services”.
Under the terms of the memorandum of understanding announced today, both One Dealer and the large HVAC distributor will work together to design, implement and launch a "comprehensive financing and services suite" tailored for the unnamed distributor's dealer network.
Both parties plan to launch a pilot program in February to a limited number of dealers, they said. The program will include customized customer service, and warranty and financing solutions that will allow the HVAC dealers to compete more effectively.
A full program launch is expected to follow, subject to a successful pilot program.
Under the deal, the parties will enter into the joint marketing program on or before April 30.
"The HVAC market is driven by local customer-dealer relationships with significant demand for financing and rental programs," said DealNet Capital's VP of financial services, Rick Henry, who was brought on earlier this month.
"Thousands of dealers direct their customers to traditional banking institutions to negotiate finance solutions and only a select number of dealers in the market have access to captive rental financing solutions.
"Our goal is to assist dealers in strengthening and building on such relationships by providing them with better access to our unique full suite of financing and servicing solutions, creating a win-win scenario for all market participants."
Earlier today, DealNet said it terminated its letter of intent to acquire Atlanta-based Home Services Company, a business that provides heating ventilation and air conditioning (HVAC) after-market protection plans to homeowners in the greater Atlantic area.
The company said it incurred no further costs related to the termination of the preliminary deal. The Atlanta-based Home Services Company deal was meant to give DealNet an in-house offering, giving its dealers an additional product to sell.
Shares in DealNet rose one penny to 27 cents on the back of the news Thursday.