Cliff Banks - The Banks Report

Dealertrack to Sell Inventory Solution to Dealersocket

August 20, 2015 — Dealertrack informed its employees this morning (and announced in a press release) that it is selling its suite of Inventory+ solutions (formerly AAX) to Dealersocket for $55 million in cash. The announcement likely means Cox Automotive’s pending $4 billion acquisition of Dealertrack is nearing commpletion.

In-depth analysis of vendor activity in the automotive retail space is available to subscribers of The Banks Report — click here. 

The sale came about as part of the Department of Justice’s review of the Cox acquisition. We have been hearing for several weeks that the DOJ was evaluating whether allowing Cox to own vAuto, the industry’s leading inventory management solution, and Inventory+ would create a near monopoly in the space.

Inventory+ has approximately 2,000 dealer clients compared with vAuto’s nearly 7,400 customers.

The sale includes the eCarlist websites but not the Canadian-based Tradetracker nor the Central Dispatch solutions.

For Dealersocket, which last year was acquired by Vista Equity Partners, the deal makes sense and provides it with a viable inventory management solution with some market share (even though, Cox likely would have done away with Inventory+ and rolled its customers into vAuto over time).

Meanwhile, the company has been on a buying spree this year:

  • AutoStar Solutions: DMS for used vehicle and buy-here-pay-here dealerships
  • FEX: DMS for used-car dealers
  • DealerFire: Website company

 

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