Cox Automotive Inc., the owner of brands such as Kelley Blue
Book, said Monday that it has agreed to buy Dealertrack
Technologies Inc. for about $3.5 billion in a move to broaden its
services for the automotive industry.
The offer price of $63.25 a share is a 59% premium to
Dealertrack's closing price Friday. Including things such as the
assumption of debt, the deal is valued at $4 billion.
Cox, a unit of closely-held conglomerate Cox Enterprises,
provides a variety of marketing and software services for the
automotive industry. In addition to Kelley Blue Book, its brands
include Autotrader and Manheim.
Dealertrack has a portfolio of Web-based software services,
including a credit application network and inventory and
registration software.
The deal is expected to close in the third quarter of the
year.
Dealertrack's shares, down 10% this year, were halted in
premarket trading.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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