Vermont Business Magazine Dealer.com, the automotive Web site developer based in Burlington, Vermont, has another new parent company. Cox Automotive, Inc, a leading provider of digital marketing, wholesale and e-commerce solutions across the automotive industry, today announced that will acquire Dealertrack in an all-cash transaction valued at $4 billion, or $63.25 per share. Dealertrack itself acquired the ownership of Dealer.com from investors in March 2014 for about $1 billion.
The acquisition is subject to a minimum tender of at least a majority of the outstanding Dealertrack common shares and customary closing conditions, and is expected to close in the third quarter of 2015.The Dealertrack Board of Directors has unanimously approved the acquisition and recommends that Dealertrack stockholders tender their shares in favor of the transaction.
One of Burlington's and Vermont's largest companies, Mayor Miro Weinberger said in a statement: “Today’s announcement about Dealertrack’s agreement with Cox Automotive is further evidence that Burlington is a wonderful place to create and grow a successful tech business.I was encouraged to hear from Dealertrack co-president Rick Gibbs that he anticipates that, as part of Cox Automotive, the company will continue to invest and grow here in Burlington.I look forward to our continued work together to create and sustain more great jobs in Burlington’s South End.”
In Vermont Business Magazine's Vermont 100+ list published in January, Dealer.com reported 2014 sales of $848 million with 838 Vermont employees and 949 employees system-wide.
Rick Gibbs leads Dealer.com, based in Burlington.
The combination of Cox Automotive and Dealertrack will create a broader suite of open solutions that deliver greater value to consumers, dealers, lenders, manufacturers and the overall automotive industry. Dealertrack’s broad solution set for dealers is an excellent complement to Cox Automotive’s vehicle remarketing services and digital markets and software solutions that serve the wider automotive ecosystem. In addition, the combination will better serve customers across global markets through each company’s respective international footprint. Together, Cox Automotive and Dealertrack will be well positioned to help customers grow their businesses and increase efficiencies as they navigate a rapidly changing global automotive industry.
“This is a great investment in our customers and in the auto industry,” said Sandy Schwartz, President of Cox Automotive. “We have long admired the Dealertrack team and its highly respected brands. Integrating our platforms will be a big step forward in our shared vision of providing open, cost-effective and efficient solutions for dealers, lenders, manufacturers and consumers. We look forward to working with Mark O’Neil and his team as Mark continues to lead the acquired businesses and as we continue to innovate for our customers.”
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Mark O’Neil, Chairman and Chief Executive Officer of Dealertrack, said, “I am confident that with Cox Automotive, we will fully unlock the potential of our combined brands and teams in the service of our clients. Dealertrack team members have been a critical element in the tremendous success our company has achieved, and I want to thank all of our team members as we move forward into this exciting new chapter of growth. I am extremely enthusiastic about our future with Cox Automotive.”
O’Neil added, “This provides a significant premium and immediate cash value for Dealertrack stockholders at closing. After careful and thoughtful analysis, with the assistance of our independent legal and financial advisors, we concluded that this transaction provides our stockholders with the opportunity to tender their shares at a price that recognizes the superior value of Dealertrack’s industry partnerships, solutions, technology, financial management and international industry position.”
The transaction is fully financed and is not subject to a financing condition. The acquisition will be funded through an existing bank facility, a new $1.85 billion bank term loan arranged by Citigroup Global Markets Inc. and a $750 million common equity investment from BDT Capital Partners.
BDT & Company and Citigroup Global Markets are serving as financial advisors, and Wachtell, Lipton, Rosen & Katz is serving as legal counsel to Cox Automotive. Evercore is acting as financial advisor and O’Melveny & Myers LLP is serving as legal advisor to Dealertrack.
Dealer.com
Dealer.com is the automotive industry’s leading provider of streamlined and intuitive solutions for managingcar dealership marketing(SEO, SEM, Display, Facebook Advertising). The company’s platform-basedAdvertising,Website, and Managed Servicesproducts allow OEMs, auto dealer groups, retail and agencies to leverage innovative technology to relevantly connect to their customers. Through its powerful technologies and teams of experts, clients capture more traffic and leads fromSEMandSEO. Its unique company culture, grounded in health, wellness, and community, fuels our passion to transform today’s digital consumer experiences into tomorrow’s retail automotive strategies.
Cox Automotive (www.coxautoinc.com)
Cox Automotive is a leading provider of vehicle remarketing services and digital marketing and software solutions for consumers, dealers, manufacturers and the overall automotive industry. Cox Automotive includes Manheim®, Autotrader®, Kelley Blue Book®, vAuto®, Xtime®, NextGear Capital®, and a host of global businesses and brands. Headquartered in Atlanta, Cox Automotive employs nearly 24,000 employees in over 150 locations worldwide. The company partners with more than 40,000 dealers, as well as most major automobile manufacturers, and touches car buyers in the U.S. with the most recognized brands in the industry. Cox Automotive unites more than 20 brands in this space, providing an end-to-end solution to transform the way people buy, sell and own cars every day. Cox Automotive is a subsidiary of Cox Enterprises, an Atlanta-based company with revenues of $17 billion and approximately 50,000 employees. Cox Enterprises’ other major operating subsidiaries include Cox Communications (cable television distribution, high-speed Internet access, telephone, home security and automation, commercial telecommunications and advertising solutions) and Cox Media Group (television and radio stations, digital media, newspapers and advertising sales rep firms).
About Dealertrack (www.Dealertrack.com)
Dealertrack’s intuitive and high value web based software solutions and services enhance efficiency and profitability for all major segments of the automotive retail industry, including dealers, lenders, vehicle manufacturers, third party retailers, agents and aftermarket providers. In addition to the industry’s largest online credit application network, connecting more than 20,000 dealers with more than 1,500 lenders, Dealertrack delivers the industry’s most comprehensive solution set for automotive retailers, including Dealer Management System (DMS), Inventory, Sales and F&I, Digital Marketing and Registration and Titling solutions.
Source: ATLANTA, GA and LAKE SUCCESS, NY – June 15, 2015 – Cox Automotive, Inc