Here we are, just talking about the quality of 3rd Party Leads and the few 3rd Party Lead providers.
Well, as of this evening, the number was reduced once again as Autobytel acquires Dealix (wholly-owned subsidiaries of CDK Global, LLC), for $25 million.
The acquisition adds approximately 600 retail new dealers and 300 retail used dealers to the Autobytel network, for a combined total of approximately 4,954 dealers. These dealer additions do not include the 450 retail new and 170 retail used overlap dealers that were receiving leads from both Dealix and Autobytel. Autobytel management expects the acquisition to be accretive to net income in 2015.
Read the full press release
Autobytel Inc. (Nasdaq:ABTL), a leading provider of online automotive services connecting consumers with dealers, has acquired Dealix Corporation and Autotegrity, Inc. (wholly-owned subsidiaries of CDK Global, LLC), for $25 million.
The all-cash transaction, which includes a working capital adjustment, combines two prominent leaders in the automotive industry to help dealers and manufacturers improve their businesses and sell more cars.
Dealix provides new and used car leads to dealerships, dealer groups, and automotive manufacturers, and consistently ranks as a top auto sales lead provider in the industry. The company is also the operator of the highly successful car buying site, UsedCars.com – one of the first used car search engines to connect consumers with a nationwide inventory of quality used cars. This site now joins Autobytel’s consumer-facing family of websites, Autobytel.com and the soon to be re-launched Car.com.
This acquisition is expected to provide a variety of significant benefits to the automotive industry, including:
- A greater commitment to delivering high converting, in-market consumers to industry partners by integrating Autobytel’s lead generation and customer acquisition processes across the entire combined network of customers;
- Enhanced analytics, consumer acquisition strategies, and product development teams;
- A more robust level of service and support for industry customers through expanded field teams, account management teams, and training groups; and
- An expanded suite of products for dealers and manufacturers, including mobile, next generation video chat, direct-to-dealer website traffic programs, and expanded used car lead services, among others.
The acquisition adds approximately 600 retail new dealers and 300 retail used dealers to the Autobytel network, for a combined total of approximately 4,954 dealers. These dealer additions do not include the 450 retail new and 170 retail used overlap dealers that were receiving leads from both Dealix and Autobytel. Autobytel management expects the acquisition to be accretive to net income in 2015.
“This acquisition creates an even more dynamic and effective automotive marketing organization,” said Jeff Coats, President and CEO of Autobytel. “The addition of Dealix further expands our reach and influence in the automotive industry by increasing our lead generation capabilities and the size of our car dealer network, and also strengthens our relationships with auto manufacturers. Autobytel’s existing proprietary lead strategies and customer acquisition programs produce estimated buy rates of at least three times the industry average. As such, by combining these organizations, we expect to significantly improve the quality of leads and related services that members of the Dealix network are accustomed to receiving.”
“Developing a greater used car presence has been a key growth initiative for Autobytel,” continued Coats, “with the company’s commercial acquisition team launching a used car beta test platform earlier this year. Our internally-generated used car business has been ramping steadily as we collect the information that allows us to optimize for quality, volume and margin. However, UsedCars.com makes an immediate contribution to this initiative and will accelerate its development.”
In addition to UsedCars.com, Dealix brings to Autobytel a suite of products that help dealers grow their sales, backed by in-depth analytics. With offices in Cambridge and the Silicon Valley area, Dealix leverages its close proximity to both Massachusetts Institute of Technology (MIT) and the vast pool of tech personnel in Silicon Valley to hire some of the brightest minds in the industry to develop products that optimize the car sales process.
This includes proprietary analytics technology and precision targeting tools that allow dealers to launch more effective campaigns based on make and geography. These products will be added to Autobytel’s already expanding platform, including TextShield, SaleMove, AutoWeb and GoMoto, which have redefined the way customers interact with dealers.
About Autobytel
Autobytel Inc. provides high quality consumer leads and associated marketing services to automotive dealers and manufacturers throughout the United States. The company also provides consumers with robust and original online automotive content to help them make informed car-buying decisions. The company pioneered the automotive Internet in 1995 with its flagship website www.autobytel.com and has since helped tens of millions of automotive consumers research vehicles; connected thousands of dealers nationwide with motivated car buyers; and has helped every major automaker market its brand online.
Investors and other interested parties can receive Autobytel news alerts and special event invitations by accessing the online registration form at investor.autobytel.com/alerts.cfm.
