Dealertrack to acquire competitor for $14 million
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Dealertrack Technologies, which makes software for auto dealers, said Tuesday it has agreed to pay $14 million to acquire a competitor that makes programs to manage vehicle service departments.
The Lake Success company said buying ASR Pro software of Raleigh, N.C., will expand its ability to offer programs to automate nearly every step of buying and servicing vehicles.
"With the proper management and control of the service lane and shop, we feel that the opportunity for capturing additional service revenue for dealers is tremendous," said Dealertrack executive vice president Raj Sundaram.
The company will pay $12 million in cash and $2 million in stock for ASR, which was launched in 2004 and has roughly 35 employees. Dealertrack said the acquisition will not significantly impact its 2014 revenue estimates.
The company announced the deal after the close of regular trading on Wall Street. In midmorning trading Wednesday, Dealertrack shares were up 45 cents, or nearly 1 percent, at $46.04.