ADP buys Cobalt?
- Thread starter DrewAment
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Drew, you beat me to it here in the forums while I was posting this news on the Blog.
Here is a copy of the article on Dealer Communications website that you already linked to.
07/08/2010
Dealer Communications has learned that ADP Dealer Services Group plans to announce Friday July 9 that it is acquiring the Cobalt Group Inc. Discussions have been ongoing for nearly two years between ADP and Cobalt's primary investor Warbug Pincus. The acquisition is expected to close sometime in the third quarter.
Seattle-based Cobalt began 15 years ago, and depending on who is asked, may have been the first company to place a vehicle online for sale. It has since evolved into a leading website and automotive digital marketing company on the strength of of its relationships with companies such as General Motors and Lexus.
There is no word on the sale price. Cobalt is generating an estimated $250 - $270 million in revenue and it's likely the deal is being done based on EBITDA (Earnings Before Taxes, Depreciation and Amortization) so ADP is probably paying in the neighborhood of $350 - $400 million. The deal will be a nice jolt to ADP's bottom line and should look good to investors on Wall Street.
It's the second major dealer website provider ADP has acquired since 2006 when it picked up BZ Results. ADP plans to keep both brands separate with Cobalt maintaining its Tier One and Tier Two relationships and BZ Results selling directly to the Tier Three/ dealership level.
Cobalt CEO and founder John Holt is staying on as vice president of ADP's Digital Marketing Group which will consist of Cobalt, Dealix (Cobalt's online leads provider division) and BZ Results. Cobal'ts data group, Integralink, will joined with ADP's data division, DMI and will be run by Richard Nichol.
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Here is a copy of the article on Dealer Communications website that you already linked to.
07/08/2010
Dealer Communications has learned that ADP Dealer Services Group plans to announce Friday July 9 that it is acquiring the Cobalt Group Inc. Discussions have been ongoing for nearly two years between ADP and Cobalt's primary investor Warbug Pincus. The acquisition is expected to close sometime in the third quarter.
Seattle-based Cobalt began 15 years ago, and depending on who is asked, may have been the first company to place a vehicle online for sale. It has since evolved into a leading website and automotive digital marketing company on the strength of of its relationships with companies such as General Motors and Lexus.
There is no word on the sale price. Cobalt is generating an estimated $250 - $270 million in revenue and it's likely the deal is being done based on EBITDA (Earnings Before Taxes, Depreciation and Amortization) so ADP is probably paying in the neighborhood of $350 - $400 million. The deal will be a nice jolt to ADP's bottom line and should look good to investors on Wall Street.
It's the second major dealer website provider ADP has acquired since 2006 when it picked up BZ Results. ADP plans to keep both brands separate with Cobalt maintaining its Tier One and Tier Two relationships and BZ Results selling directly to the Tier Three/ dealership level.
Cobalt CEO and founder John Holt is staying on as vice president of ADP's Digital Marketing Group which will consist of Cobalt, Dealix (Cobalt's online leads provider division) and BZ Results. Cobal'ts data group, Integralink, will joined with ADP's data division, DMI and will be run by Richard Nichol.
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This announcement made it's way to my inbox a few minutes ago...
Dear Dealix Customer,
I have exciting news to share with you. Today, ADP Dealer Services announced that it will be acquiring Cobalt. Following the closing of the acquisition Cobalt will be a critical pillar of ADP's expanded Digital Marketing group.
In ADP I am thrilled to have found a partner that values what Cobalt has achieved over the past 15 years and enables us to accelerate the delivery of innovative solutions and business results for our dealers. We could not ask for a better combination for you or our employees.
What will this mean for you? You will not see any immediate changes. The transaction is subject to customary closing conditions and is expected to close in the third quarter of 2010. Until then ADP Dealer Services and Cobalt will operate as independent businesses. Once the acquisition is finalized I will lead the new ADP Digital Marketing group within ADP Dealer Services, from Cobalt’s offices in Seattle. The new group will include all of the digital marketing capabilities of ADP, including BZ Results, Cobalt and Dealix. This organization will be uniquely positioned to deliver a comprehensive set of digital marketing solutions that will help transform the ways you and your manufacturers market and sell vehicles. We expect this combination to enhance all of our offerings.
The customers of Dealix have come to expect product and service innovation. Through investments in its lead platform, premier supply partnerships and, most recently, the creation of The Quality PledgeTM, Dealix has executed with a unique customer focus. Our new combination with ADP has the promise to further enhance Dealix’s ability to extend dealers’ marketing reach to the independent internet by utilizing ADP’s strengths and insight into the full buying cycle.
Along with Dealix General Manager, Anna Zornosa, and the entire Dealix team, I am excited about joining one of the most respected companies in the world. We are committed to provide you the best digital marketing solutions in the auto industry. This combination will enable us to deliver on that commitment faster and with clear accountability for the only result that matters – helping you sell more cars.
I look forward to sharing more information on our plans and strategy after the deal is closed. If you have any questions in the meantime please contact your Dealix Account Manager or call (800) 903-1965.
I’d like to thank you for your business and for your confidence in Dealix and Cobalt. In partnership with ADP, we’re going to rise to even greater heights as we work to prove how a dollar spent on advertising turns into a dollar earned for our OEM and dealer customers.
Dear Dealix Customer,
I have exciting news to share with you. Today, ADP Dealer Services announced that it will be acquiring Cobalt. Following the closing of the acquisition Cobalt will be a critical pillar of ADP's expanded Digital Marketing group.
In ADP I am thrilled to have found a partner that values what Cobalt has achieved over the past 15 years and enables us to accelerate the delivery of innovative solutions and business results for our dealers. We could not ask for a better combination for you or our employees.
What will this mean for you? You will not see any immediate changes. The transaction is subject to customary closing conditions and is expected to close in the third quarter of 2010. Until then ADP Dealer Services and Cobalt will operate as independent businesses. Once the acquisition is finalized I will lead the new ADP Digital Marketing group within ADP Dealer Services, from Cobalt’s offices in Seattle. The new group will include all of the digital marketing capabilities of ADP, including BZ Results, Cobalt and Dealix. This organization will be uniquely positioned to deliver a comprehensive set of digital marketing solutions that will help transform the ways you and your manufacturers market and sell vehicles. We expect this combination to enhance all of our offerings.
The customers of Dealix have come to expect product and service innovation. Through investments in its lead platform, premier supply partnerships and, most recently, the creation of The Quality PledgeTM, Dealix has executed with a unique customer focus. Our new combination with ADP has the promise to further enhance Dealix’s ability to extend dealers’ marketing reach to the independent internet by utilizing ADP’s strengths and insight into the full buying cycle.
Along with Dealix General Manager, Anna Zornosa, and the entire Dealix team, I am excited about joining one of the most respected companies in the world. We are committed to provide you the best digital marketing solutions in the auto industry. This combination will enable us to deliver on that commitment faster and with clear accountability for the only result that matters – helping you sell more cars.
I look forward to sharing more information on our plans and strategy after the deal is closed. If you have any questions in the meantime please contact your Dealix Account Manager or call (800) 903-1965.
I’d like to thank you for your business and for your confidence in Dealix and Cobalt. In partnership with ADP, we’re going to rise to even greater heights as we work to prove how a dollar spent on advertising turns into a dollar earned for our OEM and dealer customers.
- Apr 16, 2009
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Maybe that will mean I can finalyl get rid of my crumby GM compliant Cobalt site and use one website...our BZ site....
- May 1, 2006
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@Jason - ADP has made it pretty clear that the 2 web properties will stay pretty separate with Cobalt focusing on Tier 1 (OEM) and 2 (Local Area DMA's or Local Market Assc), with ADP and BZ Focusing on Tier 3 (Dealer).
Funny how not one person from either company (who we know are on this forum) have commented.
Funny how not one person from either company (who we know are on this forum) have commented.
