Webxu Acquires Auto Finance Brand BarNone
LOS ANGELES, May 1, 2013 /PRNewswire/ -- Webxu, Inc, a media company that owns and operates a network of consumer branded websites and businesses focused on Customer Acquisition, E-Commerce and Mobile Media, today announced the acquisition of Auto Finance brand BarNone.
Headquartered in Oakland, CA, BarNone was founded in 1995 for the purpose of helping millions of US consumers with credit challenges obtain auto loans to purchase quality vehicles in a conventional manner. BarNone connects consumers, dealers and lenders into one cohesive unit via proprietary web properties, proprietary lead delivery technologies and a 24-hour call center located in the Midwest. The company earned particular brand notoriety over the last decade with its television commercials that featured the BarNone sock puppet.
"We believe that BarNone is a natural fit with Webxu's expanding initiatives in the rapidly growing Auto industry," commented Ike Eze, President of BarNone. "By combining BarNone with Webxu's management experience in the Auto sector, and their ability to grow organically and through additional acquisitions, we see a tremendous opportunity for rapid revenue expansion in the coming quarters."
During Q1 2013, Webxu's planned organic growth strategy included the development and addition of new verticals in the lucrative Auto and Insurance categories of their Customer Acquisition operations. This strategy was planned with macro-economic indicators in mind. The US Auto Industry is recovering and entering into a rapid growth phase. During February 2013, 1.2 million light vehicles were sold in the US. This marked a 14.3 percent increase on January 2013 sales, and a 3.7 percent increase on February 2012 sales. Emarketer projects online advertising spending of the US Auto industry to follow in growth from $4.35 billion in 2012 to $7.44 billion in 2016, an approximate 71 percent increase.
"We are very excited about acquiring BarNone," said Keith Schaefer, Webxu CEO. "This business brings Webxu more than an additional $1 million annual revenue and great margins in the auto vertical. It also brings a seasoned team, a great consumer brand, and a proprietary technology platform to manage all of our verticals. We are particularly impressed with the company's direct nationwide advertiser relationships which will give us the opportunity to immediately and exponentially expand our revenue and margin production throughout 2013."
Headquartered in Oakland, CA, BarNone was founded in 1995 for the purpose of helping millions of US consumers with credit challenges obtain auto loans to purchase quality vehicles in a conventional manner. BarNone connects consumers, dealers and lenders into one cohesive unit via proprietary web properties and a 24-hour call center located in the Midwest. For more information about BarNone, visit http://www.barnone.com.
About Webxu, Inc.
Webxu, Inc. is a media company that owns and operates a network of consumer branded websites and businesses focused on Customer Acquisition, E-Commerce and Mobile Media. Through its branded consumer websites, Webxu generates revenue by providing Advertiser clients with targeted consumer traffic. Webxu is headquartered in Los Angeles, CA. For more information about Webxu, visit http://www.webxu.com.
Webxu Media Contact:
Cautionary Language Regarding Forward Looking Statements
This release and any attachments contain forward-looking statements within the meaning of the "safe harbor" provisions of the Federal securities laws, including Section 21E of the Securities Exchange Act of 1934, that involve risks and uncertainties. Words such as "will," "believe," "intend," "potential" and similar expressions are intended to identify forward-looking statements. These forward-looking statements include the quotations from management in this press release, as well as any statements regarding the Company's anticipated financial results and strategic and operational plans. The Company's actual results may differ materially from those anticipated in these forward-looking statements. Factors that may contribute to such differences include, but are not limited to: the Company's ability to deliver an adequate rate of growth and manage such growth; the impact of changes in government regulation and industry standards; the Company's ability to maintain and increase the number of visitors to its websites; the Company's ability to identify and manage acquisitions; the impact of the current economic climate on the Company's business; the Company's ability to attract and retain qualified executives and employees; the Company's ability to compete effectively against others in the online marketing and media industry; the impact and costs of any failure by the Company to comply with government regulations and industry standards; and costs associated with defending intellectual property infringement and other claims. More information about potential factors that could affect the Company's business and financial results is contained in the Company's latest annual report. These forward looking statements are made as of today's date and, except as otherwise required by law, the Company does not intend and undertakes no duty to release publicly any updates or revisions to any forward-looking statements contained herein to reflect events or circumstances after the date hereof.
SOURCE Webxu, Inc.