Car-buying marketplace AutoTrader.com announced today the acquisition of auto-value provider Kelley Blue Book in a deal expected to exceed $500 million. The exact purchase price was not disclosed.
Atlanta-based AutoTrader, founded 12 years ago, hopes the move will boost advertising revenue.
AutoTrader serves as a middleman for car buyers and sellers, aggregating sales data from dealers and private sellers. Meanwhile, 84-year-old Kelley Blue Book provides new and used vehicle information, including resale values. Combined, the two companies’ sites generate 13 million unique visitors each month.
As part of the deal, Kelley Blue Book will operate as a subsidiary of AutoTrader, maintaining its corporate headquarters in Irvine, Calif. But AutoTrader’s classifieds will be made available on KBB’s site, syncing car price information with vehicles available for sale.
The acquisition, expected to close by yearend, includes KBB sister companies CDMdata and CDM Dealer Services.
