AUTOBYTEL, one of the largest suppliers of automotive sales leads for dealers, has purchased rival Dealix 2500 million in cash, AUTOBYTEL said today.
AUTOBYTEL buy Dealix, as well as smaller companies, Autotegrity, from global CDK, the industry's largest distributors operating software provider.
The deal brings together the two leads of the most prominent suppliers, but who want to buy vehicles through dealer prospects. They usually cost 20 yuan a dealer.
The acquisition adds $ 600 Dealix franchisees AUTOBYTEL customer base and 300 second-hand car dealers, the company said.
AUTOBYTEL customer network currently 4,954 US dealers, according to the statement of the company.
Today in an interview, AUTOBYTEL CEO Jeff Coates said the company sold 6.6 million last year, resulting in auto Dealix about 500 million.
The two companies have in recent years of efforts, generated through advertising to increase their lead in the internal number of search engines such as Google and their vehicle consumer shopping sites. AUTOBYTEL brand shopping sites Autobytel.com and Car.com. Dealix large consumer-oriented site is UsedCars.com, he said.
These often lead to more internal wire vehicle sales, Coates said.
Dealix also had more used cars than cause AUTOBYTEL, a region, AUTOBYTEL been trying to strengthen, Coates said.
"This gives us a nice big upgrade this path," he said.
The deal was financed through a new $ 15 million senior secured term loan by a part of the Union Bank NA by $ 8,000,000 $ 2,800,000 balance of the cash flow AUTOBYTEL credit line drawing.
With this acquisition, AUTOBYTEL increased between the expected fiscal 2015 earnings guidance range of $ 128 million and $ 132 million. This is an increase of 20% to 24%, from 2014, the company said.
AUTOBYTEL first-quarter revenue fell to $ 26.2 million from $ 27 million a quarter last year, reflecting the acquisition last year.
Coat attributable to future income fell to distributors and AutoUSA, namely to "expected loss" from AUTOBYTEL AutoNation bought a leading website in 2014.
Profit, however, improved in the quarter. Net income rose to $ 773,000, or 9 cents per share, $ 370,000, or 4 cents a share, in the previous year for comparison.
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