Autobytel Inc. on Aug. 15 announced that it has completed the acquisition of Autoweb.com. According to Autobytel, the acquisition creates one of the world's largest, most diversified online automotive commerce and information companies providing auto distributors and manufacturers with marketing, data, technology and management services to help them sell cars, both online and off.
"Not only do we expect the combination of our businesses to yield cost savings and revenue growth; but it will allow Autobytel Inc. to provide marketing, data, technology and management services that can benefit every manufacturer and dealership as they seek to increase market share through more efficient processes," said Mark Lorimer, president and CEO of Autobytel Inc. "Just as important, we have a dramatically expanded core customer base, including Autobytel Inc.'s 25 manufacturer customers and approximately 6,000 subscribing dealers."
Lorimer cited Autobytel Inc.'s "unparalleled expertise and success" using the Internet to market cars as the foundation of the company. He noted that some of the ongoing strengths of the combined businesses forming Autobytel Inc. include:
-- Advertising programs used by manufacturers and dealers to target customers during the decision making process;
-- Powering manufacturer and portal auto channels with data and tools to help customers buy cars;
-- Providing the technology to drive one of the most advanced inventory-based manufacturer's online car selling program to date;
-- Generating billions of dollars in car sales for dealers through the company's popular websites.
"There's much more to the online automotive market than the online buying service model we pioneered and continue to dominate," Lorimer said. "With this acquisition, our evolution towards becoming a company that does business with every player in the automotive industry takes a giant step forward. We are well positioned to continue to capitalize on the opportunities within the business of building and supporting the automotive distribution and marketing infrastructure."
He noted that the company's lead referral business is further bolstered by the acquisition, with small overlap in the dealers and minimal Web site audience cross-over(1) between Autobytel Inc.'s four consumer-facing brands. This offers unique opportunities to both marketers and dealers looking to reach the broadest car-buying audience.
"According to Media Metrix, Autobytel Inc. Web sites are receiving over three million unique visitors a month(2) and Autobytel Inc. content and technology has potential exposure to over 90 percent of total Web traffic(3)," said Lorimer. "Most of the 60 percent of all Americans who go online to research and shop for a car will likely encounter Autobytel Inc. technology or content, or an Autobytel Inc. brand, during the process."
In addition to approving the acquisition, shareholders also approved Autobytel Inc. as the new name of the expanded company.
Autoweb stockholders have the right to receive 0.3553 shares of Autobytel common stock for each share of Autoweb common stock they own. Outstanding Autoweb options will be assumed and become options for Autobytel shares, subject to the share exchange ratio.
About Autobytel Inc.
Autobytel Inc. is one of the world's largest, most diversified online automotive commerce and information companies.
As the company that owns and operates Autobytel.com, Autoweb.com, CarSmart.com, AutoSite.com, and AIC (Automotive Information Center), Autobytel Inc. says its mission is to provide marketing, data, technology and management services to benefit every manufacturer and dealership.
The company powers manufacturer and portal auto channels with data and tools to help customers buy cars; provides advertising programs for manufacturers and dealers to target customers; develops technology to drive one of the most advanced inventory-based manufacturer's online car selling program to date; and generates billions of dollars in car sales for dealers through the company's Web sites.
Serving approximately 6,000 subscribing dealers and 25 international automotive manufacturer customers, Autobytel Inc. Web sites are receiving approximately three million unique visitors a month(2), and Autobytel Inc. content and technology has potential exposure to over 90 percent of total Web traffic(3). It is estimated that the vast majority of the 60 percent of all Americans who go online to research and shop for a car will encounter Autobytel Inc. content or technology, or an Autobytel Inc. brand, during the process.
References
(1) Media Metrix July 2001 Digital Media Audience Report (Over 99 percent unduplicated traffic between Autobytel.com, Autoweb.com, CarSmart.com and Autosite.com.)
(2) Media Metrix July 2001 Digital Media Audience Report (Autobytel Inc. Web sites include Autobytel.com, Autoweb.com, Autoweb.com/Lycos co-branded pages and Autosite.com.)
(3) Media Metrix July 2001 Digital Media Audience Report (Autobytel Inc. provides content to Yahoo.com, AOL Web sites, MSN.com and Lycos.com. The unduplicated audience of these four sites accounts for more than 90 percent of total traffic.)
