O’Melveny Represents Dealertrack Technologies in Acquisition of ASR ProJuly 02, 2014 FOR IMMEDIATE RELEASE
O’Melveny & Myers LLP
NEW YORK -- July 2, 2014 -- O’Melveny & Myers LLP represented Dealertrack Technologies in its acquisition of substantially all of the assets of ASR Pro, a leading provider of web-based electronic multipoint-inspection and fixed operations services for automotive dealerships.
The O’Melveny team was led by partner Paul Scrivano and associates Sarah Young and Joseph Zenruffinen.
O’Melveny & Myers LLP
With approximately 800 lawyers in 16 offices worldwide, O’Melveny & Myers LLP helps industry leaders across a broad array of sectors manage the complex challenges of succeeding in the global economy. We are a values-driven law firm, guided by the principles of excellence, leadership, and citizenship. Our commitment to these values is reflected in our dedication to improving access to justice through pro bono work and championing initiatives that increase the diversity of the legal profession. For more information, please visit www.omm.com
The following press release was issued by Dealertrack:
Dealertrack Acquires ASR Pro
Acquisition Strengthens Dealertrack's Suite of Market Leading Technologies for the Fixed Operations Market
LAKE SUCCESS, N.Y.--(BUSINESS WIRE)--July 1, 2014--Dealertrack Technologies (Nasdaq:TRAK) today announced the acquisition of substantially all of the assets of ASR Pro, a leading provider of web-based electronic multipoint-inspection and fixed operations services for automotive dealerships.
Launched in 2004, ASR Pro software is designed to help maximize workflow efficiencies and increase profitability for automotive service and parts departments within dealerships. The company, which is based in Raleigh, North Carolina, and employs approximately 35 team members, helps track, measure and manage service sales and utilization for dealers to create additional service opportunities, increase profits, improve customer satisfaction and grow their customer base.
"The acquisition of ASR Pro will augment our existing integrated suite of fixed operations offerings. With the proper management and control of the service lane and shop, we feel that the opportunity for capturing additional service revenue for dealers is tremendous," said Raj Sundaram, executive vice president, Dealer Solutions, Dealertrack. "The powerful combination of our dealer management system (DMS) and ASR Pro will help dealers transform their service business and benefit from the rapidly growing fixed operations marketplace."
According to Fred Fordin, chief executive officer, ASR Pro, "The joining of our organization with Dealertrack's resources and expertise will help more dealers create a sustainable and profitable service and parts business, while significantly improving customer satisfaction and retention. We look forward to being part of Dealertrack and continuing to bring innovative solutions to the fixed operations market."
Total consideration for the transaction is approximately $14 million in cash and Dealertrack shares ($12 million in cash and $2 million in Dealertrack shares), subject to standard purchase price adjustments. Additionally, there is $3 million of contingent consideration, subject to attaining future performance targets. We do not expect this acquisition to have a material impact on our 2014 guidance.
Details of the financial impact of the transaction are expected to be discussed as part of Dealertrack's second-quarter earnings call in August.
About Dealertrack Technologies (www.dealertrack.com)
Dealertrack Technologies' intuitive and high-value web-based software solutions and services enhance efficiency and profitability for all major segments of the automotive retail industry, including dealers, lenders, OEMs, third-party retailers, agents and aftermarket providers. In addition to the industry's largest online credit application network, connecting more than 20,000 dealers with more than 1,400 lenders, Dealertrack Technologies delivers the industry's most comprehensive solution set for automotive retailers, including Dealer Management System (DMS), Inventory, Sales and F&I, Digital Marketing and Registration and Titling solutions.
Dealertrack Technologies, Inc.
Ken Engberg, 516-734-3692
Michael DeMeo, 516-734-3691