The Cobalt Group announced Feb. 13 that its principal owner, Warburg Pincus, has extended the company a $15 million secured line of credit. This financing will fund Cobalt's continued growth and development of e-business software and services for the automotive retail market
"Cobalt has substantial financial resources, staying power and the strong support of Warburg Pincus," said Joseph P. Landy, executive managing director at Warburg Pincus and Cobalt board member. "We believe that Cobalt's people, technology, service capability, domain expertise, and demonstrated track record make it the leading e-business provider to the automotive industry and we are pleased to extend this additional financing to Cobalt."
"Warburg Pincus' extension of this $15 million line of credit demonstrates their deep confidence in Cobalt's bright future," said John Holt, president and CEO of The Cobalt Group. "It also provides Cobalt with the resources and flexibility we need to continue developing our new Nitra platform and fund the company's growth and expansion, including one or two strategic acquisitions."
Warburg Pincus has been the primary investor in Cobalt since 1998 and is now the majority shareholder. In November 2000, Warburg Pincus led a $15 million private equity investment in Cobalt, and in November 2001, Warburg Pincus invested an additional $34.5 million to take the company private.
Warburg Pincus is one of the largest private equity and venture capital firms in the world. In its 30-year history, the firm has invested approximately $12 billion in over 450 companies in 29 countries, including investments in the automotive industry.
About The Cobalt Group
The Cobalt Group works exclusively in the automotive retail market to help manufacturers and dealers develop integrated e-business programs by leveraging its technology, broad range of services and domain knowledge.
Cobalt offers a broad range of products and services developed specifically for the automotive marketplace including enterprise software for manufacturers and dealers; customer relationship management (CRM) software applications; online automotive commerce applications; the industry's largest OEM parts locating and marketing service; dealership e-business best practices training, consulting, and process compliance analysis; and wholesale used vehicle remarketing services.
With headquarters in Seattle, Wash., Cobalt has offices in five U.S. cities, and a field sales and services force in 30 states, including all major U.S. metropolitan sales areas (MSAs).
For more information, please visit www.cobaltgroup.com or call (800) 909-8244.
About Warburg Pincus
Since 1971, Warburg Pincus has invested approximately $12 billion in 450 companies in 29 countries. The firm currently has $10 billion under management, with an additional $5 billion available for investment in a range of industries including: business services, communications, financial services, healthcare and life sciences, information technology, media and natural resources/energy. Throughout its 30-year history in private equity, Warburg Pincus has invested at all stages of a company's lifecycle, from founding start-ups and providing growth capital to leading restructurings, recapitalizations and buyouts. The firm has over 50 partners and a total of over 125 professionals in offices in New York, Menlo Park, London, Munich, Hong Kong, Singapore, Seoul, Tokyo and Mumbai.
