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.
"It's all very good news; we are really excited about this," says Alison Von Puschendorf of Dealer.com.
Dealer.com operates websites for about 7,000 car dealerships nationwide and expects to generate roughly $230 million in sales this year. Company reps say the new ownership is only going to make business better. They say the already successful automotive marketing and operations software provider had been entertaining offers for awhile, and this will take it to the next level.
Von Puschendorf says, "It was the right choice to take going forward for us to grow our business."
They say the combination of two powerful automotive retailers is in the best interest of the company, and those who work for it. Dealer.com employs 830 people between its Burlington and Manhattan Beach, Calif., offices. They say no jobs will be cut, and actually they may be adding more.
"We hope so, right now we haven't announced any staffing changes, but we are certainly looking to be growing our company as we have been," says Von Puschendorf.
After the announcement, shares of Dealertrack rose 7 percent. Mayor Miro Weinberger, D-Burlington, says the deal is a testament to the economic strength of Burlington.
In a statement Weinberger said, "The news is also a high-profile demonstration that Burlington is a wonderful place to create and grow a successful tech business that should spur further local investment. I was pleased to hear from Dealer.com's leadership that today's events will provide Dealer.com the capital it needs to continue to invest and grow in Burlington."
Gov. Peter Shumlin says the acquisition echoes that sentiment statewide.
"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 Dealertrack agreement is a huge vote of confidence in Dealer.com," said Shumlin, D-Vermont.
Although the deal means big news for Burlington, representatives say employees shouldn't notice any differences right away. Any changes in the future will only mean good things for them and the city.
"We are continuing to operate here business as usual. Burlington will be a really important part of the footprint going forward. In fact, it will become a center of excellence," says Von Puschendorf.
The Dealertrack deal will close in 2014, subject to regulatory approval.