Dealertrack Technologies Inc. (TRAK), which makes software used by car dealerships, will acquire Dealer.com for about $1 billion, a person with knowledge of the matter said.
Shares of Dealertrack rose as much as 5 percent to $45.04 after the close of regular trading in New York today.
Dealertrack will pay $620 million in cash and about 8.72 million shares of stock -- valued at $373 million at today’s closing price of $42.80, for Dealer.com, which offers digital marketing services to the auto industry, the person said, asking not to be identified as the information is private.
The purchase is the largest for Lake Success, New York-based Dealertrack, whose software connects car dealers with lenders and credit-rating companies, according to data compiled by Bloomberg. The company has spent about $461 million on 19 takeovers, not including the purchase of Dealer.com, the data show.
Dealertrack’s shares have gained about 49 percent this year, giving it a market value of about $1.9 billion as of today’s close. The company has about 44 million shares outstanding, data compiled by Bloomberg show.
Dealer.com, founded in 1998, is owned by private-equity firms including Apax Partners LLP and Accel Partners. The Burlington, Vermont-based company provides online marketing and sale services to 7,000 car dealers in the U.S.
The transaction values Dealer.com at about 20 times its earnings before interest, taxes, amortization and depreciation for the 12 months ended Sept. 30, the person said.
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