Dealertrack Announces Agreement to Acquire VINtek
September 23 2013 - 3:30PM
Business Wire
Acquisition of ELT and Collateral Management
Services Provider Expands Dealertrackâs Lender Services
Platform
Dealertrack (Nasdaq:TRAK) today announced an agreement to
acquire VINtek, a provider of automotive collateral management,
electronic lien and title (ELT) and consumer automotive finance
processing services.
Established in 1990, Philadelphia-based VINtek is a leader in
delivering comprehensive ELT and collateral management services to
more than 3,000 banks, automotive finance companies and credit
unions in the United States. The company offers a number of
industry-leading services and solutions, including electronic
vehicle title, tag and tax processing services, and eSignature/
eContracting solutions supporting the on-line closing of automotive
loans.
âVINtek has been an innovator and strong supporter in the ELT
marketplace for years, and is well-respected by state governments,
including their departments of motor vehicles,â said Mark
Furcolo, executive vice president and group president, Lender
Solutions, Dealertrack. âWe believe that the combination of
VINtek and Dealertrack will give us a powerful platform to better
address the ELT and collateral management needs of states and
automotive finance lenders in the future, as well as create
innovative new product opportunities, which improve efficiencies
for automotive dealers to sell and finance vehicles.â
âOur collective base of more than 6,300 automotive finance
lenders using ELT and collateral management services will also
provide the organization with additional opportunities to
demonstrate and cross-sell our entire portfolio of solutions,â
added Furcolo.
According to Larry Highbloom, president, VINtek, âThe uniting
of our organizations will allow us to deliver operational and
service synergies that will benefit all of our customers, as well
as the technologies and services that will help them grow their
automotive loan volumes. We look forward to working with our
existing customers, and Dealertrackâs customers, to deliver ELT
and collateral management solutions that will set the standard for
others to follow.â
Total consideration for the transaction is expected to be
approximately $53.4 million in cash, subject to standard purchase
price adjustments.
This transaction is expected to close in the fourth quarter of
this year, subject to customary closing conditions. Details of the
financial impact of the transaction are expected to be discussed as
part of the Dealertrackâs third-quarter earnings conference call
in early November.
About Dealertrack Technologies
(www.dealertrack.com)
Dealertrack Technologiesâ 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 industryâs
largest online credit application network, connecting more than
20,000 dealers with more than 1,300 lenders, Dealertrack
Technologies delivers the industryâs most comprehensive solution
set for automotive retailers, including Dealer Management System
(DMS), Inventory, Sales and F&I, Interactive and Registration
and Titling solutions.
Safe Harbor for Forward-Looking and
Cautionary Statements
Statements in this press release regarding the benefits to
Dealertrack, its customers of the pending acquisition of VINtek, as
well as 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 Dealertrack, VINtek and its
solutions, 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, 2012. These
filings can be found on Dealertrack Technologiesâ 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 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
Dealertrack Technologies, Inc.Ken Engberg,
516-734-3692kenneth.engberg@dealertrack.comorMichael DeMeo,
516-734-3691michael.demeo@dealertrack.com
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