Tuesday, Sep. 24, 2013, 02:01 AM UPDATED 2:52 AMBy Auto Remarketing Staff
LAKE SUCCESS, N.Y. -
Dealertrack Technologies announced Monday afternoon that it has entered an agreement to purchase VINtek, a provider of automotive collateral management, electronic lien and title and consumer automotive finance processing services.
“VINtek has been an innovator and strong supporter in the ELT marketplace for years, and is well-respected by state governments, including their departments of motor vehicles,” said Mark Furcolo, executive vice president and group president of lender solutions at Dealertrack.
“We believe that the combination of VINtek and Dealertrack will give us a powerful platform to better address the ELT and collateral management needs of states and automotive finance lenders in the future, as well as create innovative new product opportunities, which improve efficiencies for automotive dealers to sell and finance vehicles.
“Our collective base of more than 6,300 automotive finance lenders using ELT and collateral management services will also provide the organization with additional opportunities to demonstrate and cross-sell our entire portfolio of solutions,” added Furcolo.
VINtek president Larry Highbloom added: “The uniting of our organizations will allow us to deliver operational and service synergies that will benefit all of our customers, as well as the technologies and services that will help them grow their automotive loan volumes. We look forward to working with our existing customers, and Dealertrack’s customers, to deliver ELT and collateral management solutions that will set the standard for others to follow.”
Dealertrack said total consideration for the deal will likely be about $53.4 million in cash, subject to standard purchase price adjustments.
The company also said it expects the transaction to close in the fourth quarter, subject to customary closing conditions.
As far as the financial impact of the transaction, Dealertrack anticipates discussing this during its third-quarter earnings conference call in early November.