Autobytel acquires AutoNation subsidiary, +12.3% AH

|About: Autobytel Inc. (ABTL)|By:, SA News Editor

Autobytel (ABTL+12.3% AH after agreeing to acquire AutoNation (AN) subsidiary AutoUSA for $10M in cash and a $1M 6% convertible note payable in one lump sum in five years and convertible to ABTL common stock at a conversion price reflecting a 20% premium over the price of ABTL shares on the date of closing.

ABTL says the acquisition expands its reach and influence in the industry by increasing its national new and used car dealer network to more than 5,200 from ~3,800 while boosting its business with auto manufacturers.

ABTL expects the deal will be accretive to its 2014 results.