LAKE SUCCESS, N.Y. - DealerTrack, a leading provider of on-demand software and data solutions for the automotive retail industry and links dealers with auto loan financers such as credit unions, banks and finance companies, announced the initial public offering of 10 million shares of its common stock on Dec. 13...
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LAKE SUCCESS, N.Y. – DealerTrack, a leading provider of on-demand software and data solutions for the automotive retail industry and links dealers with auto loan financers such as credit unions, banks and finance companies, announced the initial public offering of 10 million shares of its common stock on Dec. 13 The IPO was priced at $17.00 per share. Of the 10 million shares offered, about two-thirds were primary shares sold by DealerTrack; the remaining one-third were secondary shares sold by investors. The company will not receive any proceeds from the sale of shares by the selling stockholders. Shares of the company’s common stock will be traded on the Nasdaq National Market under the trading symbol “TRAK.” DealerTrack Chairman and CEO Mark O’Neill said the company’s decision to offer the IPO was driven by two things – after acquiring three companies in May, DealerTrack had a debt it intended to pay off through the IPO. In addition, after experiencing eight profitable quarters, O’Neill said “the company felt it was at the stage where it would be well received by the public market and was at a good stage in its history to seek liquidity through an IPO.” He added that, “An IPO was one of the components we always considered. We made sure we left our options open and explored various alternatives. Our board and management team decided an IPO was the best alternative.” DealerTrack filed its registration statement in July 2005 and the process took approximately five months to complete. O’Neill said, “It’s a long process in today’s regulatory environment. There’s a lot of scrutiny.” With the IPO completed, O’Neill said he sees it as being a benefit to credit unions. “It’s always advantageous to interact with a customer that has deep pockets and broad resources. It lets us bring a lot to bear in areas like expanded distribution and new development. Resources are a good thing.” About a third of DealerTrack’s mix of lenders are credit unions throughout the U.S., and O’Neill said the company has signed up a number of credit unions consistently every month. It also has relations with nearly 22,000 dealers nationwide. About 85% of those are new car franchise dealers, and the balance are independent dealers throughout the U.S. “We believe and industry data supports that credit unions are a key source for auto loan financing both direct and indirect, and we expect to continue to add credit unions to our network as requested by our dealers,” said O’Neill. -
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