One of Vermont's fastest growing tech companies has been sold for nearly $1 billion. Dealer.com was bought Thursday by a publicly-traded New York company.
Under the deal announced Thursday, the privately held company is being sold to Dealertrack Technologies for $620 million and 8.7 million shares of Dealertrack stock.
A press release went out just before 5 p.m., and communications director Alison Von Puschendorf says employees were immediately brought in for a meeting. Company CEO Rick Gibbs told the employees of the decision to sell.
Von Puschendorf says that there are five founders of Dealer.com and all of them will continue with Dealertrack. She says Dealertrack has a lot of strength on the back end of the business in things like credit applications and insurance. By adding Dealer.com, they are building on the front end of the business with marketing and advertising.
Dealertrack was holding a conference call Thursday evening with shareholders to talk about the deal and what it means moving forward.
In the meantime, Dealer.com said there will be no immediate impact on the Burlington office and its workforce.
The Dealertrack deal will close in 2014, subject to regulatory approval.
Dealer.com develops websites and digital marketing solutions for car dealers out of its Burlington headquarters. The company has 830 employees in Vermont and California, and serves about 7,000 car dealers.
We reached out to Gov. Peter Shumlin, D-Vermont, for comment. He and his economic development team have held Dealer.com on a pedestal as a top Vermont company as an example to lure other companies here. The governor released this statement: "It's further proof that Vermont is a great place to start and grow a business. Dealer.com has seen incredible success in Burlington. The Dealer-track agreement is a huge vote of confidence in Dealer.com."
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