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The deal will not be finalized until it goes through regulatory approval and is expected to be complete by the end of 2nd quarter, 2014. Around half of the purchase will be made in cash with the other half coming in the form of common shares.
"We thought about holding out for more, but then we recounted the zeroes in the number and decided to take the offer," said Tyson Madliger, CEO of Dealer Authority. "There's really no need to be greedy at this point."
Dealertrack finished last year with another blockbuster deal, buying Dealer.com for around the same price. Their hope is that this latest acquisition will add another element to their impressive digital marketing repertoire.
Some in the industry are skeptical. With the news being released on April 1st, it's possible that it's all just an April Fool's Day joke. After all, who would expect Dealer Authority to sell for so little?