Autoweb.com Acquires Automotive Information Center And Its Autosite Web-Based Products
22 September 1999
Autoweb.com Acquires Automotive Information Center And Its Autosite Web-Based Products
Combination Delivers World-Class Solution for Automotive Research and Online
Consumer Decision-Making
SANTA CLARA, Calif., Sept. 22 -- Autoweb.com ,
the leading consumer automotive Internet service ( http://www.autoweb.com ),
today announced that it has reached an agreement to acquire
Automotive Information Center (AIC), the preeminent online source for
automotive content. AIC, the Westborough, Mass., division of The Thomson
Corporation's Gale Group, is a leading provider of unbiased automotive
Web-based products and services to consumers, manufacturers and the media.
The transaction is valued at approximately $20 million, including
$16 million in cash and the rest in Autoweb.com common stock. The transaction
is subject to regulatory approval.
"To be the best automotive research and decision-making site, Autoweb.com
needs to offer consumers the best database and tools," said Dean DeBiase,
Autoweb.com's chairman, CEO and president. "We believe AIC has both. Indeed,
we believe the entire AIC enterprise is truly visionary, providing
unparalleled breadth and depth of content that make it a powerful resource.
"We expect this strategic acquisition to contribute significantly to our
competitive presence as the leading consumer automotive Internet service. AIC
will become a key ingredient in the company's multi-channel expansion
strategy, differentiating us further by enabling entry into new related online
automotive markets, and adding even greater value to our existing offerings."
As an example, Autoweb.com's Direct-to-Consumer channel will benefit
directly from AIC's new-car pricing tools and extended standard and optional
equipment descriptions. Autoweb.com's Service Center will incorporate AIC's
Troubleshooting Guide, Repair Guide and Automotive Encyclopedia. And
Autoweb.com's Dealer Referral channel will be bolstered by AIC content and
tools that enable consumers to narrow vehicle choices more quickly, compare
them in greater depth, and easily configure and price them to meet their
needs.
"We've earned our position as the U.S. market leader by investing in
research methodology, staff, and a full suite of decision support and vehicle
comparison tools," said Wayne Lilley, AIC's CEO and founder. "Since
Autoweb.com shares our vision, we will continue to strategically grow our data
licensing and servicing businesses with auto makers, the media, and
consumers."
In addition to strengthening Autoweb.com, AIC's independent growth will
continue with its successful AutoSite Database and data-licensing business.
The AutoSite Database is the foundation for its Web-based product family,
including AutoSite Pro, AutoSite ProLite, and AutoSite.com. Pro and ProLite
are used by auto manufacturers in comparative analysis, product planning,
marketing, pricing and training applications. ProLite also serves as a data
distribution point for print and electronic media. AIC's AutoSite.com
( http://www.autosite.com ) is an award-winning, 30,000-page online automotive
buyer's guide containing automotive pricing and specification information.
Once the acquisition has closed, Lilley will provide ongoing leadership as
president of the new independent division at Autoweb.com. AIC's AutoSite
product lineup will continue to serve established relationships with
automobile manufacturers, leading Internet portals, print and electronic
media, and others who use the AutoSite data and tools. Numerous auto
manufacturers use AutoSite data for internal analytical purposes and on their
internal and public Web sites. AIC's data can also be found at portals such as
Yahoo!, Excite, Lycos, Infoseek and Snap!
In addition to current, comprehensive model information, AIC also provides
recall and crash test data, insurance cost data, warranty and owner assistance
data, digital images, book values, and other information that aids consumers
in purchasing pre-owned vehicles dating as far back as a decade.
Safe Harbor Statement
Statements in this news release, including statements that include words
such as "expects," "believes" or other future-oriented statements, contain
forward-looking statements that involve risks and uncertainties that could
cause actual results to differ from anticipated results. These risks and
uncertainties include the possibility that this acquisition will not be
completed, the difficulties inherent in integrating the operations, products
and services of the two companies, the possibility that key personnel from the
acquired company may depart, and the risk that Autoweb.com may decide not to
pursue the strategies currently planned and set forth in this release. Further
information on risk factors that could affect the company's results is
detailed in our filings with the Securities and Exchange Commission, including
our Registration Statement on Form S-1 (No. 333-71177), our Form 10-Q for the
quarter ended March 31, 1999, and Form 10-Q for the quarter ended
June 30, 1999.
About Autoweb.com
Autoweb.com is the leading consumer automotive Internet service. With an
extensive collection of automotive-related community, content and commerce
offerings, Autoweb.com guides consumers through every stage of vehicle
ownership from research and buying, to enjoying, maintaining and selling. As a
trusted intermediary, the Autoweb.com process connects mass market consumers
to real-world buying alternatives through the most extensive network of Member
Dealers and other commerce partners, and ensures the consumer experience is
faster, better and easier. For more information, please visit Autoweb.com's
Web site at http://www.autoweb.com .
About Automotive Information Center (AIC)
Automotive Information Center (AIC) is the automotive industry's leading
provider of objective new and used vehicle information for professionals and
consumers. Since 1982, AIC has compiled data on pricing, specifications,
standard and optional equipment, and a wide range of supporting data on all
cars, vans, light trucks, and sport utility vehicles sold in the U.S. AIC,
based in Westborough, Mass., is a division of The Thomson Corporation's Gale
Group. For more information, please visit Autosite.com's Web site at
http://www.autosite.com.