Lake Success, N.Y. — DealerTrack Holdings Inc. announced that it has signed a definitive agreement to acquire all of the outstanding stock of Curomax Corporation, a leading online financing portal in Canada.
Curomax, founded in 2000, is a privately-owned company based in Toronto, Ontario. The majority of its business supports indirect vehicle financing in Canada, with limited U.S. operations. This acquisition will further enhance DealerTrack's ability to provide leading technology solutions to the Canadian automotive finance industry in conjunction with its DealerAccess Canada Inc. subsidiary, also located in Toronto, Ontario.
"The acquisition of Curomax supports DealerTrack's growth strategy by expanding our lender and dealer customer base in the Canadian automotive and related markets," said Mark O'Neil, chairman and CEO of DealerTrack Holdings Inc. "Together through our technologies, our people and our strong collective relationships, we will deliver best-in-class technology solutions and service plus greater operational efficiencies to our customers."
"This acquisition recognizes the significant contributions the team at Curomax has made in online indirect financing," said Alan Bird, president and CEO of Curomax Corporation. "DealerTrack shares our vision of innovation for the markets we support, and we expect our combined strengths to provide substantial benefits to our dealers, lenders and partners."
This transaction has been approved by Curomax's shareholders and is expected to close early in February. DealerTrack has agreed to pay cash consideration of approximately $44 million Canadian dollars (CAD), or approximately $37.5 million USD, for the acquisition. An additional $2.25 million CAD (approximately $1.9 million USD) cash consideration may be paid out based upon the achievement of certain operational objectives over the next 24 months. Curomax's revenue for the 12 months ended September 30, 2006 was approximately $12 million CAD (approximately $10.2 million USD).
DealerTrack will provide further detail regarding this acquisition and our full year 2007 guidance during DealerTrack's conference call reporting fourth quarter and annual 2006 results, expected to be held on February 28, 2007.
