LAKE SUCCESS, N.Y.,
Jan. 10, 2011 /PRNewswire/ --
DealerTrack Holdings, Inc. (Nasdaq: TRAK) announced today that it
has signed an agreement to acquire triVIN Holdings, Inc.
("triVIN"), a leading provider of automobile title management
services to lenders and vehicle registration services to automobile
dealers. DealerTrack will pay approximately $131 million, net of any cash acquired, and the
transaction will be financed with existing cash. The acquisition is
expected to significantly expand the breadth of DealerTrack's
transaction business, and to further strengthen DealerTrack's
relationships with lenders and automobile dealers. The
acquisition is expected to close in the first quarter of 2011,
subject to customary closing conditions.
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FDI Collateral Management ("FDI"), one of triVIN's two primary
businesses, provides electronic and paper-based lien and title
solutions that allow lenders to outsource the management of vehicle
and titles held as collateral for loans. This business is an
excellent complement to DealerTrack's existing electronic
contracting and paper processing services, and will create a
comprehensive suite of outsourced solutions for lenders. FDI
provides services to some of the nation's largest banks and captive
automotive finance companies, many of which are existing customers
of DealerTrack. FDI connects more than 2,000 lenders with
state Departments of Motor Vehicles (DMVs) to process, monitor and
report electronic lien and title data.
General Systems Solutions ("GSS"), which is triVIN's other
primary business, provides vehicle registration solutions that
allow automobile dealers, fleet companies and other third-parties
to electronically register vehicles with DMVs in twelve states, and
provides paper-based solutions that allow its customers to obtain
vehicle registrations in all fifty states. GSS has
relationships with more than 4,000 dealers, rental and fleet
companies.
Through mytitlesupport.com and RegUSA, triVIN helps make on-line
title and electronic vehicle registration transactions easier and
more efficient for consumers, dealers and lenders. triVIN and
its businesses will be key building blocks for DealerTrack to
continue to build its leadership position in providing a
comprehensive set of purchase and financing solutions for the
retail automobile market, both in store and online.
triVIN is currently a portfolio company of American Capital,
Ltd. (Nasdaq: ACAS) and is headquartered in Groton, Connecticut, with a major facility in
Sacramento, California. While
triVIN's 2010 financial statements are not yet finalized, we expect
its 2010 revenue to be between $54 and $56
million.
Mark F. O'Neil, chairman and chief executive officer of
DealerTrack, commented, "The combination of DealerTrack's and
triVIN's businesses creates a comprehensive suite of transaction
services available to automobile lenders and dealers. We believe
the combined entity will benefit considerably from the ability to
cross-sell value-added solutions and services." O'Neil
continued, "We also believe that this acquisition will better
position DealerTrack long-term to facilitate the online purchase
and financing of vehicles."
Mark Furcolo, president and chief
executive officer of triVIN, commented, "We are very excited to
join forces with DealerTrack since our combined businesses are
complementary." Furcolo continued, "This transaction will benefit
our customers by allowing us to offer a broader array of services
through one organization. We believe the combination will
allow us to leverage our platforms and accelerate the development
of new services for our customers."
The triVIN executive team is expected to remain with the
combined company.
The acquisition has been approved by the respective Boards of
Directors of both DealerTrack and triVIN. The transaction has also
been approved by triVIN's stockholders.
DealerTrack was represented by O'Melveny and Meyers LLP in this
transaction.
Conference Call
DealerTrack will host a conference call to discuss this
acquisition on January 10, 2011 at
10:00 am Eastern Time. The
conference call will be webcast live on the Internet at
http://ir.dealertrack.com/eventdetail.cfm?eventid=90806. In
addition, a live audio of the call will be accessible to the public
by calling (877) 303-6648 (domestic) or (970) 315-0443
(international); no access code is necessary. Callers should dial
in approximately 10 minutes before the call begins. A replay will
be available on the DealerTrack website until January 24, 2011.
About DealerTrack (www.dealertrack.com)
DealerTrack's intuitive and high-value software solutions
enhance efficiency and profitability for all major segments of the
automotive retail industry, including dealers, lenders, OEMs,
agents and aftermarket providers. Our solution set for dealers is
the industry's most comprehensive. DealerTrack operates the
industry's largest online credit application network, connecting
approximately 17,000 dealers with over 900 lenders. Our Dealer
Management System (DMS) provides dealers with easy-to-use tools and
real-time data access that will streamline any automotive business.
Dealers using DealerTrack AAX get the inventory management tools
and services needed to accelerate turns and increase profit. Our
Sales/Finance and Insurance solution enables dealers to streamline
the entire sales process while structuring all types of deals from
a single integrated platform. DealerTrack's Compliance solution
helps dealers meet legal and regulatory requirements and protect
their hard-earned assets. DealerTrack's family of companies also
includes data and consulting services providers ALG and Chrome
Systems. For more information, visit www.dealertrack.com.
About triVIN Holdings, Inc.
(www.trivin.com)
triVIN Holdings, Inc., through its operating subsidiaries,
provides solutions that streamline motor vehicle credentialing.
From registration and titling to collateral management,
triVIN services dealerships, leasing companies, rental agencies,
financial institutions, and consumers nationwide. The
company's suite of products and services help users increase
efficiency, save money, and provide superior customer service.
FDI offers electronic lien and title management services for
liens and loans, while GSS enables processing of motor vehicle
transactions. RegUSA processes cross-state vehicle
transactions.
Safe Harbor for Forward-Looking and Cautionary
Statements
Statements in this press release regarding benefits to
DealerTrack and its customers of the pending acquisition of triVIN
by DealerTrack, triVIN's expected 2010 revenues, possible cross-
selling opportunities from the pending acquisition, 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 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: economic
trends that affect the automotive retail industry or the indirect
automotive financing industry including the number of new and used
cars sold; reductions in auto dealerships; the impact of some
vendors of software products for automotive dealers making it more
difficult for triVIN's customers to use triVIN's solutions and
services; the ability of DealerTrack to integrate triVIN's
business; DealerTrack's success in expanding its customer base and
product and service offerings, and other risks listed in
DealerTrack's reports filed with the Securities and Exchange
Commission (SEC), including its most recent Annual Report on Form
10-K. These filings can be found on DealerTrack's website at
www.dealertrack.com and the SEC's website at www.sec.gov.
Forward-looking statements included herein speak only as of the
date hereof and DealerTrack 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-E
SOURCE DealerTrack Holdings, Inc.