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DealerTrack Acquires Title Management Company

January 11, 2011

LAKE SUCCESS, N.Y. — DealerTrack Holdings Inc. has acquired auto title management provider triVIN, the company announced on Monday. DealerTrack will pay approximately $131 million, net of any cash acquired, and the transaction will be financed with existing cash. The acquisition is expected to close in the first quarter of 2011, subject to customary closing conditions. 

With the deal, DealerTrack adds FDI Collateral Management (“FDI”), one of triVIN’s two primary businesses. The business provides electronic and paper-based lien and title solutions that allow lenders to outsource the management of vehicles and titles held as collateral for loans, which DealerTrack officials said will complement its existing electronic contracting and paper processing services, as well as create a comprehensive suite of outsourced solutions for lenders. FDI connects more than 2,000 lenders with state Departments of Motor Vehicles (DMVs) to process, monitor and report electronic lien and title data.

DealerTrack also gets General Systems Solutions (“GSS”), which is triVIN’s other primary business. It provides vehicle registration solutions that allow automobile dealers, fleet companies and other third-parties to electronically register vehicles with DMVs in 12 states, and provides paper-based solutions that allow its customers to obtain vehicle registrations in all 50 states. GSS currently has relationships with more than 4,000 dealers, rental and fleet companies. 

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

triVIN is currently a portfolio company of American Capital Ltd. and is  headquartered in Groton, Conn. It also houses a major facility in Sacramento, Calif. While triVIN’s 2010 financial statements are not yet finalized, DealerTrack officials said they expect the company’s 2010 revenue to be between $54 and $56 million. 

“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,” said Mark O’Neil, DealerTrack’s chairman and chief executive officer. “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, commented, “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. We believe the combination will allow us to leverage our platforms and accelerate the development of new services for our customers.”

The triVIN executive team is expected to remain with the combined company. The acquisition was approved by the respective boards of directors of both DealerTrack and triVIN. The transaction has also been approved by triVIN’s stockholders.

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