|[September 23, 2013]
Dealertrack Announces Agreement to Acquire VINtek
LAKE SUCCESS, N.Y. --(Business Wire)--
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 (News - Alert) and tax processing
services, and eSignature/ eContracting solutions supporting the on-line
closing of automotive loans.
"VINtek 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," said Mark Furcolo,
executive vice president and group president, Lender Solutions,
Dealertrack. "We 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
"Our 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," added Furcolo.
According to Larry Highbloom, president, VINtek, "The 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 Dealertrack's
customers, to deliver ELT and collateral management solutions that will
set the standard for others to follow."
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 aspart of the
Dealertrack's third-quarter earnings conference call in early November.
About Dealertrack Technologies (www.dealertrack.com)
Dealertrack Technologies' 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 industry's largest online credit application network,
connecting more than 20,000 dealers with more than 1,300 lenders,
Dealertrack Technologies delivers the industry's most comprehensive
solution set for automotive retailers, including Dealer
Management System (DMS), Inventory,
and F&I, Interactive
and Titling solutions.
Safe Harbor for Forward-Looking and
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
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 (News - Alert)), including our Annual Report on Form 10-K for the year ending
December 31, 2012. These filings can be found on Dealertrack
Technologies' 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
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