DealerTrack to Merge With Credit Online; More than 19,000 Dealers, 30 Lenders to Receive Cost and Access Benefits
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MELVILLE, N.Y. & BALTIMORE--Jan. 30, 2003--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(R) 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."
About DealerTrack:
With over 19,000 dealers and 23 lenders currently connected, DealerTrack is North America's premier independent web-based platform that automates and accelerates the entire dealer-to-lender relationship, from financing to daily information sharing. The DealerTrack platform enables application processing, credit bureau access, electronic contracting and lease comparisons--all in one easy-to-use, integrated solution. More information on DealerTrack is available at www.dealertrack.com or by calling 877-357-8725.
About Credit Online:
Credit Online is the e-commerce subsidiary of First American CMSI, a subsidiary of The First American Corporation . The company credit-enables business-to-business transactions through its Internet gateway and its CreditConnection technology. Credit Online's innovative technology instantly and electronically connects businesses that are credit originators (such as automotive dealers) to credit bureaus and multiple funding sources or "electronic" lenders throughout the United States and Canada via the Internet. The service is available 24 hours a day, seven days a week, expediting the credit application approval process from days to minutes. Headquartered in Annapolis Junction, Md., First American CMSI has been a leading end-to-end credit automation solutions provider, including Internet-based online lending and leasing technology, since the company's inception in 1987. First American CMSI also licenses credit-decisioning systems for consumer and business credit that have been the choice of North America's largest lending institutions. For more information, visit www.cmsinc.com or by calling 800-970-0619
About The First American Corporation:
The First American Corporation is a Fortune 500 company that traces its history to 1889. As the nation's leading diversified provider of business information, the company supplies businesses and consumers with the information resources that affect the major economic events of people's lives, such as getting a job; renting an apartment; buying a car, house, boat or airplane; securing a mortgage; opening or buying a business; and planning for retirement. The First American Family of Companies, many of which command leading market share positions in their respective industries, operate within seven primary business segments including: Title Insurance and Services, Specialty Insurance, Trust and Other Services, Mortgage Information, Property Information, Credit Information and Screening Information. With revenues of $3.75 billion in 2001, First American has more than 22,500 employees in approximately 1,300 offices throughout the United States and abroad. More information about the company and an archive of its press releases can be found at www.firstam.com.
About ADP Dealer Services:
ADP Dealer Services provides integrated computing solutions to more than 16,000 automotive and truck dealers throughout the United States, Canada and Europe. ADP Dealer Services Group is the third largest business unit of ADP. ADP (NYSE "ADP"), with $7 billion in revenues and more than 500,000 clients, is one of the largest independent computing services firms in the world. More information on ADP Dealer Services is available on the Internet at http://www.dealersuite.com.
About Reynolds and Reynolds:
Reynolds and Reynolds (www.reyrey.com) is the leading provider of integrated solutions that help automotive retailers manage change and improve their profitability. With 75 years of experience serving automotive retailing, Reynolds enables car companies and retailers to work together to build the lifetime value of their customers. The company's award-winning software, service and training solutions include a full range of retail and enterprise management systems; networking and support; e-business applications; Web services; learning and consulting services; CRM solutions, document and data management and leasing services. Reynolds serves more than 20,000 customers comprising 90 percent of the automotive retailers and virtually all car companies in North America. It conducts CRM consulting services on five continents.
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