IRVINE, Calif. -

Autobytel announced Monday afternoon that it has purchased Web-based auto leads and services provider AutoUSA from AutoNation.

Autobytel outlined the purchase price as follows:  

— $10 million in cash
— A $1.0 million, 6-percent convertible note payable in one lump sum in five years and convertible to Autobytel common stock at a conversion price reflecting a 20-percent premium over the price of Autobytel’s common stock on the date of closing, and warrants giving AutoNation the right to purchase approximately $1.0 million of Autobytel’s common stock at an exercise price reflecting a 5-percent premium over the price of the stock on the date of closing.

Thanks to the acquisition, Autobytel’s national dealership network climbs from about 3,800 dealers to more than 5,200, the company said, and drives additional business with OEMs.

Additionally, the deal gives Autobytel an opportunity to expand the customer base to which it offers its new mobile and SaleMove products, all while continuing to foster stronger relationships with automakers and dealer groups like AutoNation.

AutoUSA president Phil DuPree has joinedAutobytel and is now executive vice president, president of dealer services.

“AutoUSA brings a new, high quality client base to the Autobytel family and strengthens our existing relationship with AutoNation, which is the largest U.S. automotive retailer,” said Jeff Coats, Autobytel’s president and chief executive officer “The transaction solidifies our leadership role in the industry, enabling us to offer an even larger base of dealers and automakers top quality products, including leads that convert to sales at nearly three times an estimated industry average, and a wide range of mobile products designed to sell more cars.

“AutoUSA represents an outstanding fit with Autobytel. In addition to its core leads business, AutoUSA’s suite of complementary third-party, Web-based services includes payment-based pre-qualification tools, incentive programs and other products and services designed to help dealer customers and manufacturers increase their sales,” Coats added.

AutoNation president and chief operating officer Mike Maroone added: “Since 2000, AutoUSA has developed very strong relationships with dealers across the country. The combination of Autobytel and AutoUSA adds strength to both organizations and represents an opportunity for consolidation in an industry segment that remains fragmented. This combination benefits automotive consumers, dealers and manufacturers, alike.”