Trader Corporation Announces Strategic Agreement with Dealer.com
Trader Corporation (Trader), the vertical media business of Yellow Pages Income Fund (TSX: YLO.UN), announced today it has entered into a strategic agreement with Burlington, Vermont-based Dealer.com (www.Dealer.com) that will deliver a suite of marketing technology solutions to Canada’s new and used vehicle industry. Montreal (Quebec), January 21, 2009
Trader and Dealer.com have signed a long-term, exclusive commercial agreement making Dealer.com’s web solutions available to Trader’s extensive customer base in Canada served under its AutoTrader™ brand. Concurrent with the commercial agreement, Trader will also take a 20 per cent equity interest in Dealer.com for US$ 35 million, with the option to increase its ownership in the privately held company over time.
Dealer.com is the leading provider of online marketing solutions to the US vehicle industry including website development and management, as well as search engine marketing and optimization. It has a client base of approximately 8,000 dealers representing one-third of the new car dealerships in the United States.
“Trader will provide the Canadian vehicle industry with immediate access to proven online solutions at a time when dealerships of all kinds are looking for opportunities to more effectively manage their inventory levels and advertising spending,” said Douglas A. Clarke, President of Trader Corporation. “This strategic agreement with Dealer.com gives Trader greatly enhanced capabilities, enabling us to offer a one-stop integrated solution to Canadian auto dealers.”
Trader is already the undisputed leader in Canada through its number one AutoTrader.ca™ online car destination. Dealer.com’s best-in-class technology will strengthen Trader’s existing offering by providing complementary capabilities in the dealer services value chain, such as web site development and management.
Dealer.com’s products will include a French-language solution. The deployment of Dealer.com’s technology to Trader’s network of Canadian dealers will start in the second quarter of 2009.
Alexander Capital Group and TD Securities Inc. advised Trader on the strategic agreement and investment in Dealer.com.
About Trader Corporation
Trader Corporation is a Canadian leader in print and online vertical media with approximately 200 publications and 20 web sites covering four product verticals: automotive, real estate, general merchandise and employment. Its main brands include Auto Trader™, Auto Hebdo™, The Bargain Finder™, Buy & Sell™, Renters News™, and Home Renter’s Guide™. Trader Corporation is owned by Yellow Pages Income Fund (TSX: YLO.UN). For more information about Trader Corporation, visit www.tradercorporation.com.