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Dealertrack to Acquire Dealer.com

By DSNews on Dec 19, 2013

Dealertrack Technologies will acquire Dealer.com for $987 million, pending a regulator approval, and the acquisition is anticipated to be completed in the first quarter of 2014.  Dealertrack will purchase all the equity of Dealer.com for about 8.7 million shares of Dealertrack’s common stock and $620 million in cash. Dealer.com’s valuation was approximately 4 times earnings against approximately $230 million in revenues.

Dealer.com is a leader in digital automotive providing inventory and CRM solutions. Rick Gibbs, CEO of Dealer.com, will join Dealertrack’s leadership team and leading the digital marketing solutions group. It is reported that ex-CEO and Co-Founder Mark Bonfigli will be leaving Dealer.com upon closing of the transaction.

Both companies have been pioneers in the automotive industry, both website and automotive credit accordingly. The purchase of Dealer.com allows Dealertrack to broaden services for lenders dealers and OEMs. Dealertrack feels the cross selling of company products will further strengthen relationships with dealers, lenders and OEMs.

Dealertrack hosted a conference call to discuss this announcement today 2013 at 6:00 p.m. Eastern Time. An excited Mark O’Neill, CEO of Dealertrack, stated the relationship between the two companies has been developing for several years and it felt natural to purchase Dealer.com due to their value in the industry. Mark sees this acquisition as another step towards transforming the automotive retailing industry and making it better for all parties involved. 

Comments

Wow...this is great news for DealerTrack!

As a prominent provider of automotive internet products and services, recognizing the value of the automotive website (any dealer's online identity) as the gateway to all online related transactions for contemporary automotive transactions is a great strategy by Mark O'Neil and is his team of champions at DealerTrack.

A span of the past six months has seen more buzz, more compliments, and more discovery of the creativeness and innovation on deck at DealerTrack than ever in my 15 years of automotive internet experience.

All savvy dealer organization professionals should keep close tabs on the developments at this company which is obviously led by extraordinary automotive internet visionaries.

I know I will...

Dec 19, 2013

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