Dealertrack Acquires ASR Pro
July 02, 2014
LAKE SUCCESS, N.Y. — Dealertrack Technologies announced Tuesday the acquisition of substantially all of the assets of ASR Pro, a provider of a web-based multipoint-inspection solution and other 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 Raleigh, N.C.-based company employs approximately 35 team members, and helps track, measure and manage service sales and utilization for dealers, officials said.
“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 of Dealer Solutions for 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.”
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.
“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,” said Fred Fordin, CEO of ASR Pro. “We look forward to being part of Dealertrack and continuing to bring innovative solutions to the fixed operations market.”
Details of the financial impact of the transaction are expected to be discussed during Dealertrack’s second-quarter earnings call in August.