DealerSocket Inc. and Dealertrack Technologies, Inc. (NASDAQ: TRAK) today announced that they have entered into a definitive agreement under which DealerSocket will acquire Dealertrack's Inventory+ business an all-cash transaction for approximately $55 million.
Under the terms of the agreement, Dealertrack's Inventory+ suite of inventory management solutions, including its AAX product in the U.S. and Canada, as well as its eCarlist websites, will be acquired by DealerSocket. Inventory+ helps dealers centralize and standardize the inventory management process, gain data-driven insights, and maximize profitability.
"We are pleased to be bolstering DealerSocket's comprehensive website solutions, Customer Relationship Management and training solutions with the highly complementary inventory management services available through Inventory+," said Jonathan Ord, CEO of DealerSocket. "We look forward to welcoming the Inventory+ team to our organization and to working together to ensure a smooth transition for customers."
DealerSocket's acquisition of Dealertrack's Inventory+ business and Dealertrack's acquisition by Cox Automotive, Inc. are both expected to be completed by the end of the third quarter of 2015, subject to regulatory approval. Dealertrack's Canadian Tradetracker product and Central Dispatch are not part of the transaction.
"As we work to complete our transaction with Cox Automotive, DealerSocket's acquisition of our Inventory+ business is a great result for our Inventory+ employees, customers, and our company as a whole," said Mark O'Neil, Chairman and CEO of Dealertrack. "Seamlessly transitioning our Inventory+ team members and customers to DealerSocket is our top priority."
DealerSocket's acquisition of Inventory+ is contingent upon approval by the Department of Justice ("DOJ") in connection with the DOJ's review of the pending acquisition of Dealertrack by Cox Automotive. Dealertrack, DealerSocket and Cox Automotive are working cooperatively and expeditiously with the DOJ in connection with its review process.
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