DealerTrack Acquires Assets of Ford of Canada's DMS Business Agreement Builds on Long-Term Partnership in Canada
LAKE SUCCESS, N.Y. and MISSISSAUGA, Ontario, Oct. 10, 2012 /PRNewswire/ -- DealerTrack (Nasdaq: TRAK) today announced that DealerTrack Canada will acquire the assets of Ford Motor Company of Canada, Limited's iCONNECT Direct DMS business.
As part of the agreement, DealerTrack will assume control and own the administrative, sales, and support operations of Ford's iCONNECT Direct DMS in the Canadian provinces. Ford of Canada will continue to provide non-DMS-related help desk support, hardware procurement services, and infrastructure expertise to its dealers.
The DealerTrack/Ford of Canada relationship began in 2008 when the companies announced they will offer a full-featured, web-based DMS, using white-labeled DealerTrack software. Currently, that solution is widely available to many Ford of Canada dealers across the country. Under the terms of this new transaction, DealerTrack and Ford of Canada will continue to collaborate, post-close, to ensure a seamless transition for the dealers.
"This agreement represents a firm commitment by DealerTrack to the Canadian market, and to our continuing relationship with and support of Ford of Canada," said Michael Collins, vice president and general manager, DealerTrack Canada. "We are increasingly confident in our ability to grow our DMS footprint in this important market for years to come. Ford's Canadian dealers can continue to expect high-quality service and support under this new arrangement."
The transaction is expected to close in the fourth quarter of this year, and is not expected to have a material impact on DealerTrack's recurring, monthly subscription revenue.
About DealerTrack Canada, Inc. (www.dealertrack.ca)
DealerTrack Canada, Inc., a subsidiary of DealerTrack Holdings, Inc., is the leading provider of on-demand credit application processing solutions in Canada. The DealerTrack Canada Network connects more than 6,000 Canadian automobile, marine recreational vehicle, motorcycle, and power sport dealers to all major Canadian financial institutions and more than 50 Credit Unions and strategic industry partners. DealerTrack Canada's solution offerings also include the Company's web-powered Dealer Management System (DMS); DealerTrack AAX, a comprehensive inventory management solution; and TradeTracker, an online trade appraisal management tool. The family of DealerTrack Canada solutions allows Canadian dealers to streamline their business operations and processes, work more efficiently and reduce costs, while increasing their business' return-on-investment.
Safe Harbor for Forward-Looking and Cautionary Statements
Statements in this press release regarding the benefits of the expansion of DealerTrack DMS in Canada, the benefits to Ford dealers, the effect on DealerTrack's monthly subscription revenue, and all other statements in this release other than the recitation of historical facts are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). These statements involve a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of DealerTrack to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements.
Factors that might cause such a difference include the acceptance by Ford dealers of the DealerTrack DMS solution, and other risks listed in our reports filed with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ending December 31, 2011. These filings can be found on DealerTrack's website at www.dealertrack.com and the SEC's website at www.sec.gov. Forward-looking statements included herein speak only as of the date hereof and DealerTrack disclaims any obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or circumstances.
SOURCE DealerTrack Holdings, Inc.