Autobytel Inc., an Internet automotive marketing services company, announced that it has acquired Applied Virtual Vision, Inc. (AVV), a provider of dealership lead management tools and dealer management system (DMS) data extraction services. According to the company, with this acquisition, Autobytel becomes an industry leader in lead management and CRM solutions, with over 7,000 franchises using its Web Control®, iManagersm, and SalesEnhancer tools. The transaction adds approximately 3,000 dealer relationships to Autobytel, which now has more than 23,000 relationships with automotive retailers.
"Autobytel's acquisition of AVV is consistent with our strategy of further extending our reach in automotive marketing services," said Autobytel Inc. President and CEO Jeffrey Schwartz. "AVV's products integrate with our lead generation, customer loyalty and retention marketing services and should accelerate dealer adoption and improve retention. The lead management system is where the online car buyer meets the dealership. Web Control helps dealers sell more cars by making the online/offline transition seamless, and results in more satisfied car buyers."
Under the terms of the agreement, Autobytel Inc. says it has acquired the outstanding stock of privately held AVV for 711,109 shares of Autobytel Inc. common stock and $4.8 million in cash. During the second half of 2003, the acquisition is expected to add in excess of $3 million in revenue, and the AVV operations are expected to be cash flow neutral, including synergies, cost of integration, and additional investments. The company expects transaction costs to be approximately $0.5 million.
AVV's core dealer products are Web Control® and Automotive Download Service.
According to Schwartz, integrating the Autobytel and AVV products can improve dealers' marketing effectiveness by reducing the challenges associated with integrating multiple vendors. A dealer can now turn to Autobytel to generate Internet and non-Internet sales leads, manage them throughout the purchase cycle, and report on the effectiveness of various lead sources and marketing campaigns. Once a consumer has purchased a car, integrating Autobytel's customer loyalty and retention marketing functionality (through its RPMSM product) into AVV's CRM marketing tools will allow a dealer to execute fully integrated marketing programs across digitally printed direct mail, telephony, email, and personal web pages.
"AVV's data extraction services should accelerate many initiatives already underway at Autobytel," noted Schwartz. "Inventory data is a key driver of our used car business, which is a significant growth area. In addition, having the ability to more specifically analyze the effectiveness of our lead generation business through sales data can further validate our business as well as provide more business model flexibility in the future. Having the in-house capability to extract service records will also accelerate the considerable progress already being made by RPM."
"The acquisition of AVV can deliver a win for each of Autobytel's stakeholders," continued Schwartz. "For car-buyers, improved sales tools and CRM marketing capabilities at the dealership will improve their car-buying and ownership experience. For dealers, having best-in-class sales and marketing tools will help them improve customer follow-up and drive more sales, more cost-efficiently, as well as retain their most profitable, existing customers. And for Autobytel stockholders, integrating the AVV tools should accelerate dealer adoption and improve retention, driving financial results such as increased revenue and expanded margin."
Located in Columbus, Ohio, AVV has approximately 65 employees. It was formed by Dan Vogel and Chris Lentz in 1995 and counts OEMs and dealer groups among its clients. "Web Control's extensive customer list and enterprise reporting and management tools are a key reason we were attracted to AVV," noted Schwartz. "Autobytel has been successful at acquiring, executing, and managing relationships of this nature, and AVV adds to our ability to provide additional products and services to these accounts."
"Autobytel is a true powerhouse in online automotive commerce and the missions of AVV and Autobytel are well aligned: to harness the power of the Internet and technology to help dealers sell more cars, more cost-efficiently," said Dan Vogel of AVV. "The relationship with Autobytel will help us expand our sales and distribution efforts, better scale our technology, and train the increasing number of dealers who want to use the full range of our products' features."
Dan Vogel will continue with AVV as vice president, general manager, and Chris Lentz will continue with AVV as director of technology.
About Autobytel Inc.
Autobytel Inc., an Internet automotive marketing services company, say sit helps retailers sell cars and manufacturers build brands through marketing, advertising and CRM (customer relationship management) tools and programs. The company owns and operates the automotive websites Autobytel.com, Autoweb.com, Carsmart.com and automotive research center, AutoSite.com, as well as AIC (Automotive Information Center), a provider of automotive marketing data and technology.
