Agreement Builds on Long-Term Partnership in Canada
Lake Success, N.Y. and Mississauga, Ontario, Canada ─ DealerTrack (Nasdaq: TRAK) today announced that DealerTrack Canada will acquire the assets of Ford Motor Company of Canada, Limited’s iCONNECT Direct DMS business.
As part of the agreement, DealerTrack will assume control and own the administrative, sales, and support operations of Ford’s iCONNECT Direct DMS in the Canadian provinces. Ford of Canada will continue to provide non-DMS-related help desk support, hardware procurement services, and infrastructure expertise to its dealers.
The DealerTrack/Ford of Canada relationship began in 2008 when the companies announced they will offer a full-featured, web-based DMS, using white-labeled DealerTrack software. Currently, that solution is widely available to many Ford of Canada dealers across the country. Under the terms of this new transaction, DealerTrack and Ford of Canada will continue to collaborate, post-close, to ensure a seamless transition for the dealers.
“This agreement represents a firm commitment by DealerTrack to the Canadian market, and to our continuing relationship with and support of Ford of Canada,” said Michael Collins, vice president and general manager, DealerTrack Canada. “We are increasingly confident in our ability to grow our DMS footprint in this important market for years to come. Ford’s Canadian dealers can continue to expect high-quality service and support under this new arrangement.”
The transaction is expected to close in the fourth quarter of this year, and is not expected to have a material impact on DealerTrack’s recurring, monthly subscription revenue.
About DealerTrack Canada, Inc. (www.dealertrack.ca)
DealerTrack Canada, Inc., a subsidiary of DealerTrack Holdings, Inc., is the leading provider of on-demand credit application processing solutions in Canada. The DealerTrack Canada Network connects more than 6,000 Canadian automobile, marine recreational vehicle, motorcycle, and power sport dealers to all major Canadian financial institutions and more than 50 Credit Unions and strategic industry partners. DealerTrack Canada’s solution offerings also include the Company’s web-powered Dealer Management System (DMS); DealerTrack AAX, a comprehensive inventory management solution; and TradeTracker, an online trade appraisal management tool. The family of DealerTrack Canada solutions allows Canadian dealers to streamline their business operations and processes, work more efficiently and reduce costs, while increasing their business’ return-on-investment