TRADER Corporation just reached a blockbuster deal with Cox Automotive to acquire several Canadian subsidiaries, the companies reported late Wednesday. The deal pertains to Dealertrack Canada, VinSolutions, Dealer.Com. Xtime and Kelley Blue Book. TRADER noted in the release that most Canadian automotive retail employees are expected to transition to the company and there will be no day-to-day disruption.
In September 2021, Cox Automotive Canada transitioned its Canadian reporting structure back to the United States and shortly thereafter, Maria Soklis, then President of its Canadian and Brazilian operations left the company.
This latest deal has significant ramifications for dealers and manufacturers that use the software platforms. The news broke on the eve of the annual Talk Auto conference on Thursday morning, and attendees were buzzing, speculating and talking about the impact during networking sessions.
The landmark transaction was announced to its global team leaders on Wednesday and formally disclosed on Thursday, though the financials were not revealed. The deal will close in the coming months.
In addition to Dealertrack Canada, TRADER has acquired Cox’s Canadian operations for VinSolutions, Dealer.Com. Xtime and Kelley Blue Book.
It was noted in the announcement that the transaction will not affect current business with Manheim Canada. Manheim, Ready Logistics and NextGear Capital will remain part of Cox Automotive.
Sebastien Baldwin, Chief Executive Officer for TRADER Corporation, a leading digital marketing partner for Canadian automotive retailers and manufacturers, said in a media release: “This investment will enable us to deliver the same levels of product efficacy, innovation and service that our existing customers enjoy to even more Canadian dealerships and OEMS.
TRADER noted in the release that most Canadian automotive retail employees are expected to transition to the company and there will be no day-to-day disruption.
In the memo to its global team leaders, Cox Automotive Executive Vice President and Chief Financial Officer, Mark Bowser it was a “very difficult” decision to make and was not based on performance or market conditions.
“It was also not something we had been planning to do,” said Bowser. “We received an unsolicited offer and, after looking at it closely, we believe this is the right time and opportunity for these businesses and the incredible teams that manage them to join TRADER Corporation and help deliver a deeper market-specific Canadian retail solution that our clients and the industry are going to continue depending on for their success.”
In the media release, Bowser said: “While it is very difficult to say goodbye to some of our incredible team members in Canada, we thank them all for their countless contributions to Cox Automotive and wish them well as they continue the great work that has made these businesses so successful.”
Martin Forbes, the President for Cox Automotive International, said last fall the strategy to transition back from Canada to the U.S. would ensure the company becomes “more agile in supporting both current and future customers and help leverage synergies and efficiencies between Canada and the United States, including sharing common platforms, products and solutions.”
