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Lake Success, NY, December 12, 2005 - DealerTrack Holdings, Inc. today announced the initial public offering of 10,000,000 shares of its common stock at a price of $17.00 per share. Shares of DealerTrack's common stock will be traded on the Nasdaq National Market under the trading symbol "TRAK." In the offering, 6,666,667 shares are being sold by DealerTrack and 3,333,333 shares are being sold by the selling stockholders. In addition, DealerTrack has granted the underwriters a 30-day over-allotment option to purchase an additional 1,500,000 shares. DealerTrack will not receive any of the proceeds from the sale of shares by the selling stockholders.
Lehman Brothers acted as the book-running manager for the offering. JPMorgan and Wachovia Securities acted as co-lead managers, and William Blair & Company and SG Cowen & Co. acted as co-managers.
A registration statement relating to this offering was filed with and declared effective by the Securities and Exchange Commission. The offering is being made solely by means of a prospectus. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, and there shall not be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. A copy of the final prospectus related to this offering may be obtained from Lehman Brothers Inc., Prospectus Department, 745 Seventh Avenue, New York, NY 10019, phone number (212) 526-7000.
About DealerTrack
DealerTrack is a leading provider of on-demand software and data solutions for the automotive retail industry in the United States. DealerTrack utilizes the Internet to link automotive dealers with banks, finance companies, credit unions and other financing sources, and other service and information providers, such as the major credit reporting agencies. DealerTrack has established a network of active relationships with over 21,000 automotive dealers, including over 80% of all franchised dealers; over 175 financing sources, including the 20 largest independent auto financing sources in the United States and eight captive financing sources; and a number of other service and information providers to the automotive retail industry. DealerTrack's credit application processing product enables dealers to automate and accelerate customer financing by increasing the speed of communications between these dealers and their financing sources. DealerTrack's integrated subscription-based software products and services enable automotive dealers to: receive valuable consumer leads; compare financing and leasing programs; sell insurance and other aftermarket products; document compliance with certain laws; and execute financing contracts electronically.
Safe Harbor for Forward-Looking and Cautionary Statements
Certain statements in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements.
The following important factors could affect future results: continuing weakness in the U.S. economy; increased competitive pressure from other industry players; the inability to execute any element of DealerTrack's business strategy, including selling additional products and services to existing customers, expanding DealerTrack's customer base and product and service offerings, and pursuing acquisitions and strategic alliances. Other factors which could materially affect such forward-looking statements can be found in DealerTrack's Registration Statement on Form S-1, including the risk factors. Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
CONTACT:
Liz Zale
DealerTrack, Inc.
(516) 734-3758
liz.zale@dealertrack.com
Jen Malloy
RF|Binder Partners
(212) 994-7542
jen.malloy@rfbinder.com
