DealerTrack to Merge With Credit Online
|January 31, 2003|
More than 19,000 Dealers, 30 Lenders to Receive Cost and Access Benefits
MELVILLE, N.Y. & BALTIMORE--(BUSINESS WIRE)-- --DealerTrack, Inc., a technology services company enabling finance transactions between automobile dealers and lenders through its DealerTrack(TM) platform, today announced a definitive agreement to merge with Credit Online, Inc. and its CreditConnection® network from First American Credit Management Solutions Inc. (CMSI).
The closing of the transaction is pending final regulatory approval.
Launched in 1996, Credit Online's CreditConnection network links automotive dealers with credit bureaus and multiple funding sources throughout the United States and Canada. The service features direct connectivity with several top dealer management systems (DMS), and also provides communication and analysis tools that help finance and insurance managers increase productivity.
Mark O'Neil, DealerTrack president and CEO, said, "Under the terms of the pending transaction, the functionality and benefits of CreditConnection will be integrated into the DealerTrack platform. Dealers will continue to have access to the DealerTrack platform at no cost, while lender connectivity and maintenance costs are expected to decline as a result of the integration. With more lenders and dealers coming together, all parties benefit from increased efficiency of car sales by enabling more automobile dealers to offer more financing choices to their customers."
O'Neil added that DMS connectivity, the elimination of double data entry and the creation of a seamless dealer desktop will also benefit all parties.
Howard L. Tischler, president and CEO of First American CMSI, said, "Both organizations have built strong teams with positive reputations in the industry. The combination of DealerTrack and CreditConnection will enable the integrated system to deliver incremental value to both dealers and lenders. Tight integration between our credit origination systems and DealerTrack's platform will enhance the combined entity's ability to provide credit automation solutions that benefit our dealer and lender customers."
Bob Karp, senior vice president, e-Commerce, of ADP Dealer Services, noted, "ADP is excited to be an integral part of this transaction. By providing connectivity to the ADP suite of solutions, we are responding to our dealers' needs and offering exceptional value to our customers."
Greg Collins, senior vice president, Reynolds and Reynolds, said, "This merger exemplifies the theme of integration, which is central to our strategy at Reynolds. We look forward to working with the combined organization to offer the strongest capabilities to our customers."