|Dealertrack to buy Dealer.com for about $1 billion||| Print ||
|Written by The Associated Press|
|Friday, 20 December 2013 07:24|
Dealertrack Technologies Inc., which makes software used by auto dealerships, said Thursday that it is buying privately held Dealer.com in a cash and stock deal that could be worth nearly $1 billion.
The company said the deal will expand the services it provides to auto dealers, lenders and shoppers. Dealer.com, which is based in Burlington, Vt., makes marketing and customer-relationship-management software for auto dealerships.
Dealertrack said it will pay about $620 million in cash for Dealer.com plus about 8.7 million of its common stock. Shares of Dealertrack closed at $42.80 Thursday. At that share price, the total deal would be worth $992.4 million.
The two companies said the deal is expected to close in the first quarter of 2014 and is projected to increase Dealertrack's earnings.
Dealer.com expects to have revenue of $230 million in 2013. The company has 830 employees and its products are used by about 7,000 auto dealers in the U.S.
Dealertrack said it will continue to use the Dealer.com name. Dealer.com's CEO Rick Gibbs will become Dealertrack's executive vice president and president of its digital marketing solution team.
In after-hours trading, shares of Lake Success, N.Y.-based Dealertrack jumped 6.5 percent to $45.60.
Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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