Online automotive marketing services provider Autobytel Inc. (ABTL) Friday said it expanded its business with the acquisition of substantially all of the assets of privately-held Cyber Ventures Inc. and Autotropolis Inc. The transaction is expected to be immediately accretive to Autobytel's earnings. Cyber Ventures and Autotropolis' co-founders Ian Bentley and William Ferriolo and certain members of their staff will join the Autobytel team.
Cyber Ventures and Autotropolis have common ownership and share operating staff and other administrative and operational resources. The Tampa, Florida-based companies generate and sell high-volume in-market consumer automotive purchase requests, through proprietary content and search marketing capabilities.
Irvine, California-based Autobytel noted that, on a combined basis, Cyber Ventures and Autotropolis had 2009 annual revenues of approximately $10 million. Autobytel reported annual revenues of $53 million for 2009 and $23.9 million for the first half of 2010.
Autobytel's Chief Executive Officer Jeffrey Coats said that the acquisition gives Autobytel a significant competitive advantage by providing it with an additional major source of high-quality, ready-to-buy consumer purchase requests coming directly from its network of branded consumer websites. "We expect our higher-margin, internally-generated purchase requests to increase by upwards of 150%, and our total purchase request volume to grow by more than 40%," Coats added.
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