Cox and Dealertrack to Offer Broader Suite of Open Solutions for the Automotive Industry
LAKE SUCCESS, NY: Recently Cox Automotive – provider of digital marketing wholesale and e-commerce solutions across the automotive industry, and Kelley Blue Book –a vehicle valuation and automotive research company have together announced their plan to acquire Dealertrack Technologies –provider of software solutions and services for automotive retailers for $4 bn.
The merger will create a broader suite of open solutions that deliver greater value to consumers, dealers, lenders, manufacturers and the overall automotive industry. The deal will benefit both the parties. Dealertrack’s broad solution complements Cox Automotive’s vehicle remarketing services, digital markets, and software solutions that serve the wider automotive ecosystem.
GurTalpaz, Analyst at StifelNicolaus& Co, an investment-banking firm that offers financial advisory services, believes that the deal will help Cox Automotive strengthen its place at the top of the automotive inventory management software market.
“Cox Automotive’s strategy is to move toward the new-car sales side,” says SanjeevVarma, Managing Director,Teneo Capital, an independent investment bank providing strategic and financial advice on mergers, acquisitions and divestitures. He adds, “They’re already the biggest in the business on the used-car side and now they’re trying to broaden it to the new-car side.”
O’Neil, Chairman and Chief Executive Officer of Dealertrack, feels that the deal provides a significant premium and immediate cash value for Dealertrack stockholders at closing. After careful and thoughtful analysis, with the assistance of their independent legal and financial advisors, they concluded that this transaction provides their 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.