The deal is subject to customary closing conditions, including regulatory approval, and is currently expected to close in the first quarter of 2014.
“Dealer.com and its team, whom we’ve long admired and respected, complement our solutions, and significantly enhance our ability to deliver a market leading suite of integrated technologies capable of transforming automotive retailing,” said Mark O’Neil, Chairman and CEO, Dealertrack.
“This is a very exciting opportunity for Dealer.com to leverage the growth and success we’ve achieved over the past 15 years,” said Rick Gibbs, CEO of Dealer.com. “By combining our strengths with those of Dealertrack, we will be able to deliver a powerful, integrated, end-to-end solution that will help bring the automotive retailing industry to a new level of efficiency and performance.”
The Apax Funds acquired approximately 30% of the shares in Dealer.com in July 2011 and, asDealer.com’s largest shareholder, have played an important role in supporting management throughout this strong growth phase. Mitch Truwit, Partner and co-CEO elect at Apax Partners, said, “We are proud to have partnered with Rick and his team, as they built Dealer.com into an undisputed leader in its space. Through an outstanding focus on innovation, customer service and teamwork, they have redefined how dealers leverage digital technologies and the internet to drive auto sales.”
Marcelo Gigliani, Partner at Apax Partners added, “There is a highly compelling strategic and financial rationale for combining Dealer.com and Dealertrack. Given the respective companies’ complementary value propositions and teams, their leading positions in their respective segments of the auto ecosystem, and their ability to leverage common platforms with increased scale, we believe that the combined company has exceptional opportunities ahead of it.”
Through the Apax Digital practice, the Apax Funds are one of the most active and experienced investors in digital companies, combining extensive digital investment expertise across three continents with deep operational value-add. Recent Apax Digital investments includeDealer.com, Bankrate, Trader Corporation (autotrader.ca), Soufun, Trader Media Group (autotrader.co.uk), and King.com.