Deal Creates Largest Online Automotive Remarketing Company in North America
MENLO PARK, Calif. & TORONTO--July 24, 2006--AutoTradeCenter, Inc. (ATC) and Onlane Group, Inc. (Onlane), North America's two leading Internet-based automotive remarketing companies, today announced the signing of a definitive agreement that will create the industry's largest online auction company for automotive dealers to purchase and sell wholesale vehicles. The combined organization, to be called ATC-Onlane, Inc., will offer the industry's most comprehensive suite of online remarketing and inventory procurement services available -- from pre turn-in through to post-sale -- to auto manufacturers, consumer off-lease, rental car and commercial fleet companies, wholesalers and both franchised and independent car dealers throughout the United States and Canada.The union brings together the complementary strengths of the two companies, providing unparalleled expertise in customized upstream remarketing solutions for the consumer off-lease and commercial fleet leasing market segments, as well as a stronger presence across a spectrum of other industry segments, including rental, repossession and dealer consigned vehicles. In addition, the combined company will continue to build on existing core competencies in distributed inventory management, logistics and decision support analytics to match the right vehicles to the right buyers faster, easier and more efficiently.
Post-merger, the dealer bases of both ATC and Onlane will benefit from the access provided by joining open marketplaces within the United States and Canada, enabling them to purchase inventory from additional sources with a greater product offering. To the benefit of sellers, the combined company will have a broader, more diverse group of automobile dealers participating in a single venue. Both sellers and buyers will benefit from the increased range of services offered through the combined company.
"Together, we offer a world-class customer service team, enhanced technical resources, strong financial backing and even more powerful online remarketing products and services," said Roger Butterwick, CEO, ATC. "Moreover, each company brings an in-depth understanding of a complex market space and the knowledge of how to meet the unique needs of a diverse set of customers. Buyers and sellers using online auto remarketing channels are the real winners here."
"Onlane and ATC were both pioneers and innovators in online auto remarketing, each contributing to the rapid growth of the industry," said Clive Kinross, president, Onlane. "Years later, both companies are still the leaders in the industry. By combining, we gain a more compelling value proposition to attract new consignor customers and further accelerate dealer adoption of the online channel."
The senior management of both companies will remain with the combined entity. ATC CEO Roger Butterwick will become CEO of ATC-Onlane. Michael Stein, CEO of Onlane, will become Chairman. The company will have over 200 employees with headquarters based in Menlo Park, Calif. and major office locations in Mesa, Ariz. and Toronto, Ont., providing full North American coverage with a strong local presence in key regional markets.
About Onlane Group, Inc.
Founded in 2000, Onlane Group, Inc. (Onlane) is the leading supplier of Internet-based, multi-channel, auto remarketing and inventory procurement solutions that maximize business results for buyers and sellers by matching the right vehicles to the right buyers faster, easier and more efficiently. Onlane operates these customized solutions and technology platforms for OEM finance companies, daily rental companies, licensed automobile dealers and auto auctions. Select Onlane customers include: American Suzuki Motor Corp., ARI, Audi Finance Canada, BMW Financial Services Canada, Donlen, GE Commercial Finance Fleet Services, Mike Albert Leasing, MINI Financial Services Canada, Mitsubishi Motors North America, Primus Automotive Financial Services Canada, including Mazda, Jaguar, Subaru, KIA, Volvo and Land Rover lease portfolios, Southeast Toyota Finance, Volkswagen Finance Canada, Word Omni Financial Corp. and Wheels Inc; supporting a broad spectrum of online distribution channels. Onlane's solution has enabled its customers to reduce cycle times, transaction costs and indirect costs and make smarter remarketing decisions that achieve better results. For additional information, please visit the Company's website www.onlane.com or call +1 (866) 966-5263.
About AutoTradeCenter
AutoTradeCenter, Inc. (ATC) is the leading online auction company for automotive dealers to buy and sell wholesale used vehicles. The company offers proven, end-to-end auto remarketing products and services to auto manufacturers, captive finance companies, lease and rental companies, financial institutions and wholesale auto auctions. ATC powers successful online remarketing programs for Audi Financial Services, American Honda Finance, Chase Auto Finance, Daimler Chrysler Financial Services, Ford Motor Credit, Porsche Financial Services, Volkswagen Credit, Enterprise Rent-a-Car, Subaru of America and several others. For more information, visit the company's website at www.autotradecenter.com or call +1 (866) 969-0321.