Autobytel Announces Acquisition of AutoUSA

The pioneer of the automotive internet, Autobytel, announced their acquisition of AutoUSA, the web-based auto leads and services provider, from AutoNation Inc.  The purchase of the Ft. Lauderdale-based company was announced yesterday with expectations for the transaction to significantly expand Autobytel’s dealer network.

The AutoUSA purchase price included $10 million in cash with an additional $1 million, 6% convertible note payable in a single lump sum in five years and convertible to Autobytel common stock at a conversion price reflecting a 20% premium over the price of Autobytel’s common stock on the date of closing.  Additionally, the terms provide AutoNation with the option to purchase approximately $1 million of Autobytel’s common stock at an exercise price reflecting a 5% premium over the price of the stock on the closing date.  AutoUSA experienced a positive operating income and cash flow in 2013, with revenues of approximately $30 million.

Autobytel expects the acquisition of AutoUSA to significantly expand their reach in the industry, with projections for increasing its national new and used car dealer network from approximately 3800 to over 5200 as well as an increase in their business with auto manufacturers.  The purchase will provide Autobytel with the ability to offer its new mobile and SaleMove products to a wider customer base to further its presence throughout the growing sector.

Autobytel president and CEO, Jeff Coats, described the effect of the acquisition of AutoUSA in a press release.  “AutoUSA brings a new, high quality client base to the Autobytel family and strengthens our existing relationship with AutoNation, which is the largest U.S. automotive retailer”, he said.  “The transaction solidifies our leadership role in the industry, enabling us to offer an even larger base of dealers and automakers top quality products, including leads that convert to sales at nearly three times an estimated industry average, and a wide range of mobile products designed to sell more cars”.

The president of AutoUSA, Phil DuPree, is now part of the successful Autobytel team, having signed on as Executive Vice President.  DuPree proudly joins Autobytel with plans to further their important work of assisting car buyers with finding the best vehicle to suit their needs, as well as delivering vital consumer purchasing data to its partners in the industry.  Autobytel has helped tens of millions of consumers since pioneering the automotive internet in 1995, and they have helped every major automaker with marketing their brand online.  The announcement of Autobytel’s acquisition of AutoUSA arrives on the heels of their recent purchase of Advanced Mobile, LLC, a company which provides a vast array of auto industry mobile products and services including mobile apps, mobile websites, Send2Phone functionality and text message marketing, and the web-based portal TextShield, which provides dealers with the ability to manage text communications centrally.  These products and services, along with SaleMove, a product that Autobytel recently invested in to provide consumers with the ability to interact in real-time with auto dealers and manufacturers, will be available to every company in Autobytel’s broadening network.