Acquisition Strengthens Dealertrack’s Suite of Market Leading
Technologies for the Fixed Operations Market
Company Website:
http://www.dealertrack.com
LAKE SUCCESS, N.Y. -- (Business Wire)
Dealertrack
Technologies (Nasdaq:TRAK) today announced the acquisition of
substantially all of the assets of ASR Pro, a leading provider of
web-based electronic multipoint-inspection and fixed operations services
for automotive dealerships.
Launched in 2004, ASR Pro software is designed to help maximize workflow
efficiencies and increase profitability for automotive service and parts
departments within dealerships. The company, which is based in Raleigh,
North Carolina, and employs approximately 35 team members, helps track,
measure and manage service sales and utilization for dealers to create
additional service opportunities, increase profits, improve customer
satisfaction and grow their customer base.
“The acquisition of ASR Pro will augment our existing integrated suite
of fixed operations offerings. With the proper management and control of
the service lane and shop, we feel that the opportunity for capturing
additional service revenue for dealers is tremendous,” said Raj
Sundaram, executive vice president, Dealer Solutions, Dealertrack. “The
powerful combination of our dealer management system (DMS) and ASR Pro
will help dealers transform their service business and benefit from the
rapidly growing fixed operations marketplace.”
According to Fred Fordin, chief executive officer, ASR Pro, “The joining
of our organization with Dealertrack’s resources and expertise will help
more dealers create a sustainable and profitable service and parts
business, while significantly improving customer satisfaction and
retention. We look forward to being part of Dealertrack and continuing
to bring innovative solutions to the fixed operations market.”
Total consideration for the transaction is approximately $14 million in
cash and Dealertrack shares ($12 million in cash and $2 million in
Dealertrack shares), subject to standard purchase price adjustments.
Additionally, there is $3 million of contingent consideration, subject
to attaining future performance targets. We do not expect this
acquisition to have a material impact on our 2014 guidance.
Details of the financial impact of the transaction are expected to be
discussed as part of Dealertrack’s second-quarter earnings call in
August.
About Dealertrack Technologies (www.dealertrack.com)
Dealertrack Technologies’ 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, OEMs, 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 1,400 lenders,
Dealertrack Technologies 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.
Safe Harbor for Forward-Looking and Cautionary Statements
Statements in this press release regarding the benefits of Dealertrack's
solutions, ASR Pro, any conclusions or statements based thereon and all
other statements in this release other than the recitation of historical
facts are forward-looking statements (as defined in the Private
Securities Litigation Reform Act of 1995). These statements involve a
number of risks, uncertainties and other factors that could cause actual
results, performance or achievements of Dealertrack Technologies to be
materially different from any future results, performance or
achievements expressed or implied by these forward-looking statements.
Factors that might cause such a difference include the performance and
acceptance of the Dealertrack solutions, including ASR Pro, the
performance of Dealertrack's third-party partners, and other risks
listed in our reports filed with the Securities and Exchange Commission
(SEC), including our Annual Report on Form 10-K for the year ending
December 31, 2013 and our Quarterly Reports on Form 10-Q. These filings
can be found on Dealertrack Technologies' website at www.dealertrack.com
and the SEC's website www.sec.gov.
Forward-looking statements included herein speak only as of the date
hereof and Dealertrack Technologies disclaims any obligation to revise
or update such statements to reflect events or circumstances after the
date hereof or to reflect the occurrence of unanticipated events or
circumstances.
TRAK-G
Contacts:
Dealertrack Technologies, Inc.
Ken Engberg, 516-734-3692
kenneth.engberg@dealertrack.com
or
Michael
DeMeo, 516-734-3691
michael.demeo@dealertrack.com
Source: Dealertrack Technologies, Inc.
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