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Autobytel Acquires Dealix, Auto Integrity From CDK Global for $25 Million | DrivingSales News

Autobytel Acquires Dealix, Auto Integrity From CDK Global for $25 Million

May 21, 2015 3 Comments

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Autobytel announced today it has acquired Dealix and Auto Integrity Inc. from CDK Global for $25 million in cash. Prior to this acquisition, both organizations were wholly owned subsidiaries of CDK Global. Autobytel and Dealix coming together means that two of the most prominent lead providers for dealers are now joining forces.

In an interview reported by the Automotive News, the president and CEO of Autobytel, Jeff Coats, noted the two companies combined together generated millions of leads. Coats explained that Autobytel sold dealers 6.6 million leads in 2014 to 5 million for Dealix. The acquisition creates a company that sold out 11.6 million leads to dealers in 2014. AN also reported that the Dealix acquisition brings 600 new car dealerships and 300 used car stores to the Autobytel customer base. In a statement, Coats said specifically that the Dealix and Auto Integrity purchase would strengthen Autobytel’s used car business.

Coats explained, “Developing a greater used car presence has been a key growth initiative for Autobytel … with the company’s commercial acquisition team launching a used car beta test platform earlier this year. Our internally generated used car business has been ramping steadily … usedcars.com makes an immediate contribution to this initiative and will accelerate its development.”

This integration will bring three car shopping sites together. Autobytel.com, Car.com and UsedCars.com will now be part of the Autobytel family. This acquisition means that Autobytel is projecting more ambitions revenue results for 2015. According to AN, Autobytel has increased it’s expected fiscal revenue to a range of $128 to $132 million. That will be a 20-24 percent increase over 2014.

Finally, Autobytel CEO Jeff Coats reflected on the acquisition when he said, “The addition of Dealix further expands our reach and influence in the automotive industry by increasing our lead generation capabilities and the size of our car dealer network, and also strengthens our relationships with auto manufacturers…we expect to significantly improve the quality of leads and related services that members of the Dealix network are accustomed to receiving.” What do you think of two major lead providers joining forces? Do you see that as a positive for dealers?

About the Author:

The DrivingSales News team is dedicated to breaking the relevant and the tough stories affecting car dealers. Have questions for DrivingSales News? Reach the team at news@drivingsales.com.

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    Dave Martinson
    Dave Martinson

    Bob, thank you for the insight! It’s always interesting to take a look at a story with a bit of historical context. Also, theautochannel.com is an excellent automotive website!

    Interesting side note.. here are two stories from our archives
    http://www.theautochannel.com/news/2004/12/10/301161.html Autobytel Sues Dealix For Patent Infringement (Dec 10, 2004)

    http://www.theautochannel.com/news/2006/12/19/032000.html Autobytel and Dealix Enter $20,000,000 Settlement Agreement (Dec 12, 2006)

    I guess they kissed and made up or not.

    I think CDK was dumping the trash. There are fewer and fewer people willing to give personal information in exchange for a price on a car. They can find that info in lots of places without having to submit a lead. Leads are trending sharply down, and I think CDK knew it was time to get whatever they could for Dealix. That business model doesn’t work anymore.

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