Cox Automotive completed its $4 billion deal to acquire Dealertrack Technologies on Thursday, Cox said.
The U.S. Department of Justice had blocked the acquisition, which was originally announced in June. The deal was postponed several times as the companies sought regulatory approval.
Initially, the two companies said the delays were “routine.” But the DOJ said earlier this week it had objected to the deal, and in fact the DOJ had filed a complaint to block the acquisition.
The Justice Department said it objected because adding Dealertrack’s Inventory+ suite to Cox Automotive’s existing business would have pumped up Cox’s share of the inventory-management solutions sector to 86%, from 60%.
To gain DOJ approval, Dealertrack sold Inventory+ to DealerSocket Inc., San Clemente, Calif., also effective Thursday. That transaction was initially announced in August. At the time, Dealertrack acknowledged the tie-in between the Inventory+ sale and the DOJ’s review of the larger Cox Automotive-Deaelrtrack acquisition.
Atlanta-based Cox Automotive already owns Manheim, AutoTrader, Kelley Blue Book, vAuto, Xtime, and NextGear Capital.
Dealertrack, based in Lake Success, N.Y., is best known for its online credit application network, which Dealertrack says connects 20,000 dealers with more than 1,500 lenders. Dealertrack also offers software and services in dealer management systems, sales and F&I, digital marketing, registration, and titling.
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