With about 5,000 employees, Dealertrack’s various software and services connect dealers with lenders, manufacturers and after-market parts companies. Its subsidiary, Dealer.com, also provides marketing services and produces websites for dealerships.
Mark O’Neil, Dealertrack’s chairman and CEO, will take on a senior executive role in Cox Automotive.
To satisfy federal regulators and close the transaction, Cox agreed to sell Dealertrack’s Inventory+ business line to DealerSocket for about $55 million.
The U.S. Department of Justice’s Antitrust Division challenged Cox Automotive’s purchase of Dealertrack this week on grounds that Cox would dominate the car dealer inventory management software business. The proposed settlement, which the Justice Department filed this week in conjunction with the lawsuit, would help preserve competition, the government said.