The Cox Enterprises headquarters in Atlanta. Cox Automotive Inc, a unit of closely held Cox Enterprises, is buying Dealertrack Technologies Inc, which supplies software services for vehicle retailers, for $4bn to add to businesses that include Kelley Blue Book, AutoTrader and auction company Manheim. The all-cash offer of $63.25 a share, announced yesterday in a statement, represents a 59% premium to Friday’s closing price of $39.85. The shares had fallen 10% this year through Friday. The deal will be funded through an existing bank facility, a new $1.85bn bank term loan arranged by Citigroup Global Markets Inc and a $750mn common equity investment from BDT Capital Partners, according to the statement. BDT & Co and Citigroup Global Markets are serving as financial advisers, to Cox Automotive while Wachtell, Lipton, Rosen & Katz serves as legal counsel. Evercore is acting as financial adviser to Dealertrack with O’Melveny & Myers serving as legal adviser, reports Bloomberg.
