LAKE SUCCESS, N.Y. — DealerTrack Holdings revealed Monday it has signed an agreement to acquire triVIN Holdings, a provider of title management services to lenders and vehicle registration services to dealers. 

DealerTrack executives said they will pay approximately $131 million, net of any cash acquired. They indicated the transaction will be financed with existing cash.

Management went on to emphasize the acquisition is expected to significantly expand the breadth of DealerTrack's transaction business and to further strengthen the company's relationships with lenders and dealers. 

DealerTrack expects the acquisition to close in the first quarter of 2011, subject to customary closing conditions. 

Executives elaborated about what triVIN brings into the DealerTrack fold.

FDI Collateral Management, one of triVIN's two primary businesses, can provide electronic and paper-based lien and title solutions that can allow lenders to outsource the management of vehicle and titles held as collateral for loans.

"This business is an excellent complement to DealerTrack's existing electronic contracting and paper processing services, and will create a comprehensive suite of outsourced solutions for lenders," company officials stressed.

"FDI provides services to some of the nation's largest banks and captive automotive finance companies, many of which are existing customers of DealerTrack," they continued.

FDI connects more than 2,000 lenders with state Departments of Motor Vehicles to process, monitor and report electronic lien and title data, officials pointed out. 

Meanwhile, General Systems Solutions, which is triVIN's other primary business, can provide vehicle registration solutions that can allow dealers, fleet companies and other third-parties to electronically register vehicles with DMVs in 12 states. The provider also can support paper-based solutions that can allow its customers to obtain vehicle registrations in all 50 states.

Officials mentioned GSS has relationships with more than 4,000 dealers, rental and fleet companies. 

"Through mytitlesupport.com and RegUSA, triVIN helps make online title and electronic vehicle registration transactions easier and more efficient for consumers, dealers and lenders," DealerTrack insisted.

"triVIN and its businesses will be key building blocks for DealerTrack to continue to build its leadership position in providing a comprehensive set of purchase and financing solutions for the retail automobile market, both in store and online," the company went on to say.

DealerTrack also indicated triVIN is currently a portfolio company of American Capital with headquarters in Groton, Conn., and a major facility in Sacramento, Calif.

"While triVIN's 2010 financial statements are not yet finalized, we expect its 2010 revenue to be between $54 and $56 million," DealerTrack officials estimated.

Mark O'Neil, chairman and chief executive officer of DealerTrack, went on to say, "The combination of DealerTrack's and triVIN's businesses creates a comprehensive suite of transaction services available to automobile lenders and dealers.

"We believe the combined entity will benefit considerably from the ability to cross-sell value-added solutions and services," he continued. "We also believe that this acquisition will better position DealerTrack long-term to facilitate the online purchase and financing of vehicles."

Mark Furcolo, president and chief executive officer of triVIN, also added, "We are very excited to join forces with DealerTrack since our combined businesses are complementary.

"This transaction will benefit our customers by allowing us to offer a broader array of services through one organization," Furcolo asserted. "We believe the combination will allow us to leverage our platforms and accelerate the development of new services for our customers."

Management also expects the triVIN executive team to remain with the combined company.

Officials also said the acquisition has been approved by the respective boards of directors of both DealerTrack and triVIN. The transaction has also been approved by triVIN's stockholders.

DealerTrack noted it was represented by O'Melveny and Meyers in this transaction.