CarBiz Sells Software Division
SARASOTA, Fla. — CarBiz announced recently that it has sold its software division to Constellation Homebuilder Systems, a division of Constellation Software Inc., for $2.5 million.
According to officials, the sales price is more than double what the software division had contributed to the company in gross profit last year.
As part of its product offerings to car dealerships in the past, CarBiz had provided the necessary software to help administer loan packages, provide independent dealer accounting, facilitate inventory management systems and help with contracting and collection functionality.
With the company's acquisition of 26 dealerships last fall, CarBiz said it is now focusing its efforts on a growth strategy and the day-to-day operations of the dealerships it has acquired. The proceeds from the sale will be used to reduce debt and improve cash flow.
Carl Ritter, CarBiz's chief executive officer, stated, "While the software division had provided an excellent supplemental package to the dealerships in the past, we are focusing our efforts on the future and concentrating our efforts in areas generating higher margins.
"By putting our time, money, energy and resources into loan packages and other financial services, we know this will have a greater impact on the bottom line for the company and for our shareholders," he continued.
On top of the dealership acquisitions, CarBiz also reported that it opened its first superstore in Houston at the start of this year, where it finances higher value vehicles for longer terms resulting in higher margins.