Spokespersons disclosed on Monday afternoon that Cox Automotive will purchase Dealertrack in a 4$ billion deal. The software company has captured Cox Automotive’s interest due to its ability to offer solutions for important automotive segments of the market.
Cox Automotive is making plans to improve its services by the end of the year. The company sees a major opportunity in the acquisition of Dealertrack Technologies as there are many benefits that could arise from this collaboration.
Dealertrack Technologies has strengthened its position in the industry due to the software-based solutions it offers to the automotive industry. The clientele that the said company has created in this market segment has also influenced Cox Automotive when choosing to sign a deal with them.
The vehicle marketer announced on Monday that they will be purchasing Dealertrack Technologies in a $4 billion deal. No other details have yet been provided in relation to the terms and conditions of the agreement.
According to the representatives of Cox Automotive, Dealertrack managed to bring important names on their side ever since they first started their activity in 2001. The enterprise has developed note-worthy partnerships with dealers, lenders, third-party retailers, as well as vehicle manufacturers.
Dealertrack Technology currently holds one of the largest online network for credit applications. Their services bring 20,000 dealers and 1,500 lenders closer together, in addition to the numerous inventory, marketing and sales options it offers.
Given these benefits and the positive reputation that Dealertrack has, Cox Automotive saw their collaboration as a great opportunity to expand their services and increase their visibility. Consumers, too, will have a lot to win from the partnership as the enterprises will be able to offer many more solutions.
Sandy Schwartz, the President of Cox Automotive told the press that they take great confidence in the new deal. He further confessed that the company has long admired Dealertrack Technologies and the services they offer, but was waiting for the right moment to make propositions for a deal.
By joining together their two platforms, the conglomerate will provide better solution for manufacturers, dealers, lenders and clients. The company vows to offer a wider range of prices which would also include the more modest categories of the society.
Cox Automotive is a group of companies working in the automotive industry, such as, Manheim, Motors.co.uk, Autotrader, Kelley Blue Book, vAuto, Xtime and NextGear Capital. The enterprise was first found in 1898 and its headquarters is in Atlanta. The firm boasts 150 locations worldwide and it has approximately 24,000 workers.
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