Cox Enterprises Buys 25% of AutoTraderDeal Hikes Cox Stake to 98% 1/03/2014 10:18 AM Eastern
Cox Enterprises, parent of Cox Communications, said Friday that it has purchased an additional 25% interest in AutoTrader Group from Providence Equity Partners for an undisclosed sum.
With the purchase, Cox Enterprises now holds a 98% stake in AutoTrader Group, with the remainder being held by current and former employees.
"With more than 32 million monthly visitors to our industry-leading sites AutoTrader.com and KBB.com, AutoTrader Group continues to grow as a trusted and valued online automotive resource for customers across the nation,” Cox Enterprises CEO John Dyer said in a statement. “Our portfolio of media advertising and software products serves more than 27,000 dealer relationships, and we are confident we will continue to lead the way in connecting automotive dealers with the car-buying public. We have greatly appreciated Providence's strong contributions to the company's exceptional performance as a partner in this growth."
Providence Equity acquired a 25% stake in AutoTrader in 2010 to help accelerate the company's growth. Since that time, AutoTrader acquired Haystak Digital Marketing, HomeNet Automotive, Kelley Blue Book, vAuto and VinSolutions. The collective companies now constitute AutoTrader Group.
"We are extremely gratified to have partnered with Cox and the AutoTrader team," said Providence Managing Director Michael Dominguez in a statement. "Through strategic acquisitions and the introduction of dealer software solutions, they have advanced the original vision of the company and created a game changer. AutoTrader has redefined the online auto marketplace and the entire auto shopping experience for the better. It exemplifies the type of media company we seek to invest in around the world. We are proud to have contributed to its growth and believe the company has a very bright future ahead."
AutoTrader Group is the nation's largest digital automotive marketplace and provider of marketing and software solutions to automotive dealers throughout the U.S.