LAKE SUCCESS, N.Y. — Dealertrack has reached an agreement to acquire VINtek, a provider of automotive collateral management, electronic lien and title (ELT) and consumer automotive finance processing services.
Philadelphia-based VINtek provides comprehensive ELT and collateral management services to more than 3,000 banks, automotive finance companies and credit unions in the United States. It offers a number of solutions, including electronic vehicle title, tag and tax processing services, and eSignature/ eContracting solutions supporting the on-line closing of automotive loans.
“We believe that the combination of VINtek and Dealertrack will give us a powerful platform to better address the ELT and collateral management needs of states and automotive finance lenders in the future, as well as create innovative new product opportunities, which improve efficiencies for automotive dealers to sell and finance vehicles,” said Mark Furcolo, executive vice president and group president of Lender Solutions for Dealertrack.
Total consideration for the transaction is expected to be approximately $53.4 million in cash, subject to standard purchase price adjustments.
This transaction is expected to close in the fourth quarter of this year, subject to customary closing conditions. Details of the financial impact of the transaction are expected to be discussed as part of Dealertrack’s third-quarter earnings conference call in early November.