Cox-Dealertrack deal to create full-service dealer software powerhouse
Cox Automotive's $4 billion hit acquisition of Dealertrack Systems includes applications giants with complementary strengths and small product overlap, the CEOs of both firms said today.
Cox Automotive gives to the planned amalgamation such household words to sellers as Manheim, AutoTrader.com, Kelley Blue Book, vAuto, VinSolutions and Xtime, stated Cox Automotive President Sandy Schwartz.
Publicly traded Dealertrack, mean time, is the proven leader in giving program, digital-marketing and retail programs that enable car dealers to give vehicle shoppers the capability to finish most of a trade online, mentioned Dealertrack CEO Mark O'Neil.
"We have become complementary," O'Neil stated.
Cox Automotive is on speed for $5 billion in sales in 2015. Dealertrack posted sales of $253 million in its fiscal first-quarter ended March 3 1.
Between both companies, they provide applications and digital-marketing solutions for each section of the car lot.
Those change from supplier management systems and customer-relationship management to stock management, support scheduling, finance and insurance, and third party car listing and merchandizing solutions.
Cox Automotive has consented to spend $4 billion in funds for Dealertrack, or $63.25 per-share. That is a 59% premium over Dealertrack's $39.85 per-share closing price Friday. Dealertrack inventory, not surprisingly, sky-rocketed on the news, trading up 5 7% to $62.68 as of 1:18 pm EDT.
Schwartz stated Dealertrack's sector-top positions in giving applications as well as other solutions produced the business "worth a small more" to Cox Automotive, a component of privately-held Cox Enterprises in Atlanta. Cox Enterprises, which manages cable and media businesses, posted sales last year of about $17-billion.
Dealertrack was behind the largest acquisition a year ago among car dealer applications sellers when it paid $1-billion in cash and inventory to get digital marketing giant, Dealer.com.
The firm is still bearing that acquisition, Dealertrack stated in its first quarter earnings statement last month. In the Q1, Dealertrack's net loss widened to $22.7 million, or 42 cents per-share, compared with a net reduction of $11.6 million, or 25 cents, in the year-earlier quarter.
O'Neil Stated he's thrilled about the way the abilities of Cox Automotive and Dealertrack unfurl in the forthcoming months.
He explained he's staying on as Chief Executive Officer of Dealertrack when it becomes a fully owned subsidiary of Cox Automotive.
The offer is subject to anti-trust acceptance by national regulators. It's likely to close during the next quarter in 2013.
The acquisition is entirely funded and isn't subject to any funding circumstances, the firms said.
James B. Treece given to this report.
It's possible for you to reach David Barkholz at [email protected] -- Follow David on and
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