IRVINE, Calif. — Autobytel Inc., a provider of digital automotive services that connect in-market car buyers with dealers and OEMs, has signed a definitive agreement to sell its specialty finance leads (SFL) product to Internet Brands Inc.
Per the agreement, the SFL product will be sold for $3.2 million in cash, as well as additional transition licensing income that will total $1.6 million over a five-year period.
“This divesture will enable us to further dedicate time and resources to our fastest growing business initiatives — our core vehicle lead and click products,” said Jeff Coats, president and CEO of Autobytel. “We believe divesting this noncore asset is in the best interest of our stockholders as we redeploy the proceeds from the sale back into our core business.”
The transaction is expected to close on Dec. 31, 2016, subject to customary closing conditions, according to the company. For this calendar year, SFL revenue is expected to be $6.4 million, a slight decrease from the prior year’s $6.5 million.