Autobytel, a provider of online consumer purchase requests and marketing resources to the automotive industry, has acquired substantially all of the assets of privately-held Autotropolis and Cyber Ventures. Prior to the acquisition, the Sellers operated under common ownership in Tampa, Florida and shared operating staff and other administrative and operational resources. Cyber Ventures through proprietary content, generates and sells in-market consumer automotive purchase requests. Autotropolis, through its Autotropolis.com website, provides new car purchase requests and related digital products directly to automotive dealers.
The acquisition was effected through an Asset Purchase Agreement. The aggregate purchase price is $15,000,000, which includes post-closing cash payments of up to $1,000,000, contingent on the achievement of target operating goals of the acquired companies over a 12 quarter period commencing with the quarter ending December 31, 2010, and ending with the quarter ending September 30, 2013. At closing, Autobytel paid a portion of the purchase price with a combination of $9,000,000 in cash on hand, $5,000,000 in convertible subordinated debt, and a warrant to purchase 2,000,000 shares of Autobytel’s common stock.
On a combined basis, Cyber Ventures and Autotropolis had 2009 annual revenues of approximately $10 million. Autobytel reported annual revenues of $53 million for 2009 and $23.9 million for the first half of 2010. The transaction is expected to be immediately accretive to Autobytel’s earnings.
Cyber Ventures and Autotropolis co-founders Ian Bentley and William Ferriolo and certain members of their staff will join the Autobytel team.
USA, Tampa, FL & Irive, CA