Autobase gets bought by Dominion Enterprises.

[Jeff Kershner]

Dominion Enterprises Acquires Autobase, Inc.

"Dominion Enterprises, a leading media and information services company, announced today that it has acquired Autobase, the leading supplier of auto dealership marketing and sales solutions. Terms of the transaction were not disclosed."

Dominion also purchased InterActive Financial Marketing Group (a special finance lead generation and marketing company) based out of Virginia just last week. I guess since Dominion moved their headquaters to Norfolk VA, they figured they may as well buy someone around the corner from the new office.

In case you're not aware, Dominion Enterprises (in the automotive sector) already owns:

Dealerskins - Dealer web design provider and the queen of Flash (BZ wears the kings hat).

Dealer Specialties - photo and video collection services, I'm sure we all know they are.

Just Automotive - direct marketing company for dealers

XiGroup - Another web design firm for dealers

Mailmark - Another direct marketer

SelectQu - A data integration software company for automotive related businesses

And now they have a full fledged CRM software to add to their repertoire. I personally have never been a huge fan of AutoBase CRM but I heard they have made some improvements since I saw it last. They did finally add some ILM features that I saw at NADA earlier this year (though again, not too impressed). However, one of the managers that I work with swears by it and thought it was the best thing since sliced bread.

So where exactly is Dominion heading with all of these acquisitions?

Update: Read "Dominion Enterprises: The Unwieldy Conglomerate" for a little deeper history.

 

[Lao Shi]

Dominion Enterprises

Please if there is a CRM Player out there with an affordable system that will work for dealers let us know, we need a simple, user-friendly solution that will work.

Maybe someone does listen. Maybe this new venture will provide the solutions to make us all more effective. This market area is fertile for a company that is able to offer a simple, web based option that is cost effective for the dealers.

I have seen in a number of markets where there is a monopoly, oligopoly or the industry is dominated by a few big players then technology evolves and boom there are a number of companies come in and offer better solutions at affordable prices.

ADP “the archaic one” has had a dominant position for way too long and the company has been suffering with the “hardening of the arteries.” It is time for new fresh approaches as solutions.

I have used a number of LMT's (Lead Management Tools) over the past 6 years and none of them are the real answer. Maybe Dominion Enterprises or when Microsoft Auto Solutions, check out their web site if you have not done so, rolls out the new system in the next year or so we will see a system that is the answer.

The days are numbered for the companies providing poor, substandard, cookie cutter solutions at inflated prices or outdated service and we welcome the new breed of companies offering solutions.

It will soon be time to sell that stock in those old line companies’ folks and invest in the new resources as they come to market.

 

[Startups in the Auto Industry]

Dominion Enterprises: The UnwieldyConglomerate

Scrolling through my RSS feeds this morning, I noticed on DealerRefresh that Dominion Enterprises acquired another company, definitely not surprising, but I think it’s interesting, in light of their recent history. I am not sure if anyone has ever d...

 

[Todd Mathews]

I totally agree with Loa. It is time for companies to offer affordable solutions at reasonable prices to the dealer body. For too long many companies have sold into the ignorance of the market with flash and hype. Sad to say many dealers have paid for their education buying into all the hype. That being said, there are some great companies emerging with world class, truly integrated technology that really have the best interest of the dealer in mind.

PS: I think ADP and Rey Rey should be shaking in their boots watching Microsoft on the horizon. That should be very interesting to watch in the next couple of years.

 

[Todd Mathews]

Sorry Lao for misspelling your name.

 

[Brandon Hoffman]

xigroup makes some pretty decent dealer websites. One of our clients recently had one done through them. Its the most custom looking dealer website ive seen out of a larger company.

 

[Alex Snyder (blog)]

I don't know if I should be happy or sad with this news. I've been through too much pain with larger companies to feel this is a good move for AutoBase. The smaller companies are fantastic to deal with because everyone, within the organization, is excited about having a pivotal role. Once that small company is acquired by a larger one, these same excited employees find themselves amongst a sea of other employees and prohibitive policies. Their access to the head boss no longer exists, and their excitement eventually dwindles. I've personally seen this with:

AutoMark - acquired by Reynolds & Reynolds
Traver Technologies - acquired by ADP
AVV - acquired by AutoByTel
I can go on and on

AutoBase is a decent CRM, and their latest ILM tool looks like an improvement (but still not perfect). With this news, I worry over past experiences that AutoBase will become a stagnant tool. The big company acquirements seem to create a loss of innovation, elongated support response times, disconnects, and watered-down-underpaid staffs.

With that woe on the table, I must admit that I am not fully familiar with Dominion Enterprises. There is always the possibility they are the exception to the rule.

 

[EJ]

My experience with Dominion Enterprises doesn't lead me to believe they will integrate any of these companies into a more useful platform for dealers. They tend to let each company run itself, with little top down guidance.

 

[Cliff]

The comments regarding how little integration there is between Dominion's companies are insightful. Mitch Brooks confirmed that strategy will continue in an interview last night. He also confirmed Dominion is getting more aggressive with its acquisition strategy.

Whether that's good for the industry is for you guys to decide.

http://wardsdealer.com/latest/dominion_acquisition_autobase/

I know, it's a little self-serving posting a link to an article I wrote....

 

[Jeff Kershner]

Thanks for the link Cliff and thanks for stopping in to comment!!