Cox Automotive Acquires Dealertrack For $4 Billion
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Cox Automotive, Inc., a provider of digital marketing, wholesale, and e-commerce solutions across the automotive industry; and automotive retailer software provider Dealertrack Technologies, Inc. announced on June 15 that they have entered into a definitive merger agreement.
Cox Automotive will acquire Dealertrack in an all-cash transaction valued at $63.25 per share. 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.
The combination of Cox Automotive and Dealertrack proposes to create a broad suite of open solutions for dealers and, as stated in the companies' joint press release, "...the wider automotive ecosystem." Cox Automotive and Dealertrack believe the merger will make the combined company, "...well positioned to help customers grow their businesses and increase efficiencies as they navigate a rapidly changing global automotive industry."
The transaction is fully financed and is not subject to a financing condition.
(Editor's note: NAFAConnection contributor Thomas Webb is Chief Economist for Cox Automotive via Manheim Consulting.)
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