LAKE SUCCESS, N.Y.--(BUSINESS WIRE)--Dealertrack Technologies (Nasdaq:TRAK) today announced the acquisition of substantially all of the assets of ASR Pro, a leading provider of web-based electronic multipoint-inspection and fixed operations services for automotive dealerships.
Launched in 2004, ASR Pro software is designed to help maximize workflow efficiencies and increase profitability for automotive service and parts departments within dealerships. The company, which is based in Raleigh, North Carolina, and employs approximately 35 team members, helps track, measure and manage service sales and utilization for dealers to create additional service opportunities, increase profits, improve customer satisfaction and grow their customer base.
“The acquisition of ASR Pro will augment our existing integrated suite of fixed operations offerings. With the proper management and control of the service lane and shop, we feel that the opportunity for capturing additional service revenue for dealers is tremendous,” said Raj Sundaram, executive vice president, Dealer Solutions, Dealertrack. “The powerful combination of our dealer management system (DMS) and ASR Pro will help dealers transform their service business and benefit from the rapidly growing fixed operations marketplace.”
According to Fred Fordin, chief executive officer, ASR Pro, “The joining of our organization with Dealertrack’s resources and expertise will help more dealers create a sustainable and profitable service and parts business, while significantly improving customer satisfaction and retention. We look forward to being part of Dealertrack and continuing to bring innovative solutions to the fixed operations market.”
Total consideration for the transaction is approximately $14 million in cash and Dealertrack shares ($12 million in cash and $2 million in Dealertrack shares), subject to standard purchase price adjustments. Additionally, there is $3 million of contingent consideration, subject to attaining future performance targets. We do not expect this acquisition to have a material impact on our 2014 guidance.
Details of the financial impact of the transaction are expected to be discussed as part of Dealertrack’s second-quarter earnings call in August.
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 1,400 lenders, Dealertrack Technologies delivers the industry’s most comprehensive solution set for automotive retailers, including Dealer Management System (DMS), Inventory, Sales and F&I, Digital Marketing and Registration and Titling solutions.
Safe Harbor for Forward-Looking and Cautionary Statements
Statements in this press release regarding the benefits of Dealertrack's solutions, ASR Pro, any conclusions or statements based thereon and 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 forward-looking statements.
Factors that might cause such a difference include the performance and acceptance of the Dealertrack solutions, including ASR Pro, the performance of Dealertrack's third-party partners, and other risks listed in our reports filed with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ending December 31, 2013 and our Quarterly Reports on Form 10-Q. These filings can be found on Dealertrack Technologies' website at www.dealertrack.com and the SEC's website 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 circumstances.