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Cox Automotive to buy Dealertrack in $4 billion deal

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Cox Automotive
Acquisition   Autotrader and Kelley Blue Book

Cox Automotive, owner of the Autotrader online automobile market and Kelley Blue Book car valuation service, said it wil buy Dealertrack Technologies in a deal valued at $4 billion.

The $63.25 per share offer represented a 59 percent premium to Dealertrack's Friday close.

Cox's vAuto business provides software that analyze market data to tell car dealers which are the best models to stock.

The deal has an equity value of $3.44 billion, based on the number of diluted outstanding shares the company had on March 31.

Cox, the automotive arm of media company Cox Enterprises, said it would fund it through a $1.85 billion loan arranged by Citigroup Global Markets, a $750 million equity investment from BDT Capital Partners and existing credit facility.

The companies said they expect the deal to close in the third quarter of 2015.

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