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DealerTrack buys digital marketing company for $48.9 million
Lake Success-based DealerTrack Holdings Inc., which manufactures software for auto dealers, said on Tuesday that it had acquired a digital marketing company for $48.9 million.
Launched in 2005, ClickMotive Lp is based in Plano, Texas, and produces programs for car dealers to market themselves via the Internet, mobile devices, social media and elsewhere.
“With this acquisition, we are able to significantly expand the website and interactive marketing capability we acquired with eCarList,” DealerTrack chairman and chief executive Mark O'Neil said.
ClickMotive has roughly 110 employees. During the first six months of the year, the company had roughly $7.3 million in revenue but a net loss of $200,000, according to documents DealerTrack filed with the U.S. Security and Exchange Commission.
ClickMotive's revenue has increased more than 25 percent in each of the last two years. DealerTrack said in its SEC filing that it anticipates ClickMotive's revenue will continue to grow. If ClickMotive achieves certain performance targets in 2013, the sellers will be eligible to receive an additional $7.65 million from DealerTrack.
DealerTrack employs about 1,800 people, including more than 300 on Long Island.