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Autobytel acquires AutoNation subsidiary, +12.3% AH

  • 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.
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