DealerSocket to buy Dealertrack’s inventory solution for $55M
In a move executives see as a pathway to satisfy regulators’ concerns, DealerSocket capped off its User Summit on the West Coast on Thursday by announcing a development with Dealertrack Technologies. The two technology companies entered into a definitive agreement under which DealerSocket will acquire Dealertrack’s Inventory+ business in an all-cash transaction for approximately $55 million.
Under the terms of the agreement, Dealertrack’s Inventory+ suite of inventory management solutions, including its AAX product in the U.S. and Canada, as well as its eCarlist websites, will be acquired by DealerSocket.
Officials indicated DealerSocket’s acquisition of Dealertrack’s Inventory+ business and Dealertrack’s acquisition by Cox Automotive are both expected to be completed by the end of the third quarter, subject to regulatory approval. They added Dealertrack’s Canadian Tradetracker product and Central Dispatch are not part of the transaction with DealerSocket.
The companies also said DealerSocket’s acquisition of Inventory+ is contingent upon approval by the Department of Justice in connection with the DOJ’s review of the pending acquisition of Dealertrack by Cox Automotive.
Dealertrack, DealerSocket and Cox Automotive are working cooperatively and expeditiously with the DOJ in connection with its review process, according to a statement released on Thursday.
“As we work to complete our transaction with Cox Automotive, DealerSocket’s acquisition of our Inventory+ business is a great result for our Inventory+ employees, customers, and our company as a whole,” said Mark O'Neil, chairman and chief executive officer of Dealertrack.
“Seamlessly transitioning our Inventory+ team members and customers to DealerSocket is our top priority,” O’Neil added.
DealerSocket recapped that Inventory+ can help dealers centralize and standardize the inventory management process, gain data-driven insights, and maximize profitability.
“We are pleased to be bolstering DealerSocket’s comprehensive website solutions, customer relationship management and training solutions with the highly complementary inventory management services available through Inventory+,” said Jonathan Ord, chief executive officer of DealerSocket.
“We look forward to welcoming the Inventory+ team to our organization and to working together to ensure a smooth transition for customers,” Ord went on to say.
Editor’s note: For more details about how this development is going to impact DealerSocket, watch for a future report published in both Auto Remarketing and BHPH Report.