The Industry's Leading Source For F&I, Sales And Technology

Software & Technology

DealerTrack to Acquire Arkona Inc.

April 27, 2007

Lake Success, N.Y. and South Jordan, Utah — DealerTrack Holdings Inc. and Arkona Inc. have signed a definitive agreement for DealerTrack to acquire Arkona for $1.38 per share of common stock. The total purchase price of the transaction is approximately $58.9 million.

This acquisition will bring together DealerTrack, a provider of on-demand software and data solutions for the automotive retail industry, and Arkona, a provider of on-demand dealer management systems for automotive dealerships.

The transaction has been structured as a cash tender offer for 100 percent of Arkona's outstanding capital stock. The offer price represents a 3 percent premium over the closing stock market price of Arkona on April 26, 2007 and a 16.9 percent premium relative to Arkona's average closing stock price over the prior three months. DealerTrack intends to commence the offer on or about May 1, 2007. The transaction has been unanimously approved by each company's board of directors, and Arkona stockholders who own approximately 30 percent of Arkona's outstanding shares have committed to tender their shares in the tender offer.

"The acquisition of Arkona supports our goal of providing a seamless on-demand solution that addresses the technology needs of DealerTrack's dealer customers," said Mark O'Neil, chairman and chief executive officer of DealerTrack. "We also believe that Arkona can facilitate our plans to expand our network and subscription offerings to independent dealers, and the marine and specialty markets."

Additional details regarding the tender offer and the transaction will be disclosed in tender offer documents that will be filed concurrently with commencement of the tender offer.

Arkona's stockholders will be able to obtain copies of these documents free of charge, along with other documents filed with the Securities and Exchange Commission, at http://www.sec.gov/. Arkona stockholders can also obtain free copies of the solicitation/recommendation statement, along with any documents Arkona has filed with the SEC, by request to Arkona, Inc. at 10757 South River Front Parkway, Suite 400, South Jordan, UT 84095, Attention: Leland Boardman, telephone: (801) 501-7100.

DealerTrack stockholders can obtain copies of the tender offer statement free of charge, along with any documents DealerTrack has filed with the SEC, by request to DealerTrack at 1111 Marcus Avenue, Suite M04, Lake Success, NY 11042, Attention: Investor Relations, telephone: (516) 734-3600.

Your Comment

Please note that comments may be moderated. 
Leave this field empty:
Your Name:  
Your Email:  

CLOSE [X]

READ NEXT

Industry Loses the Courtesy Man

Jim Moran, owner of JM Family Enterprises, passed away at Hillsboro Beach, Fla. this morning at the age of 88 — six years after he handed over the reigns of his 38-year-old JM Family Enterprises.