Message #29 From:
NewsBot Date: December 19, 2006 04:07:00 PM
ABTL News Autobytel and Dealix Enter Settlement Agreement
IRVINE, Calif. & REDWOOD CITY, Calif.--(BUSINESS WIRE)--Autobytel Inc. (Nasdaq:ABTL) and Dealix Corporation today announced that
they entered into a settlement agreement relating to the resolution of
the case titled Autobytel Inc. v. Dealix Corporation in the United
States District Court for the Eastern District of Texas, Marshall
Division Case No. 2:04-cv-338 (LED).
Under the agreement, the parties will agree to dismiss the litigation
with prejudice and without any admission of wrongdoing within five
business days of Autobytel’s receipt of the
initial payment specified below. The agreement will be effective once
the dismissal and the agreement are approved by the court.
The agreement provides that Dealix will pay Autobytel a total of
$20,000,000 in settlement payments, $12,000,000 of which will be payable
within one-hundred and twenty days of November 13, 2006, with the
remainder to be paid out in installments of $2,666,666.67 on the next
three annual anniversary dates of the initial payment. The remaining
payments subsequent to the initial payment are guaranteed by WP Equity
Partners, Inc., a Warburg Pincus affiliate.
The agreement also provides for a license from Autobytel to Dealix and
The Cobalt Group of patents and patent applications and mutual releases
of claims.
Autobytel Inc. President and Chief Executive Officer James Riesenbach
and Dealix Corporation President John Holt said: "We are satisfied that
both parties to this litigation have amicably reached an agreement to
settle the lawsuit."
About Autobytel Inc.
Autobytel Inc. (Nasdaq:ABTL) is one of the largest online
automotive marketplaces, empowering consumers to make smart vehicle
choices using objective automotive data and insightful interactive
editorial content. The result is a convenient car-buying process backed
by a nationwide network of dealers who are committed to providing a
positive consumer experience. Every day consumers choose Autobytel-owned
and operated websites —Autobytel.com, Autoweb.com,
CarSmart.com, Car.com, AutoSite.com, Autoahorros.com, and CarTV.com–
to facilitate their car-shopping decisions. Autobytel’s
ability to attract millions of highly qualified, in-market car buyers
and connect them with retailers has made it a leader in facilitating the
entire customer car-buying lifecycle.
The Company’s innovative marketing,
advertising, data and CRM products, including its Web Control®
customer management system, Retention Performance Marketing (RPM®)
service reminder program, Special Finance LeadsSM,
and AIC® data center, are designed
to enable dealers to offer a premium consumer experience. Since
pioneering pro-consumer online automotive content and purchasing in
1995, Autobytel has helped more than twenty-seven million car buyers,
generating billions of dollars in car sales for dealers.
About Dealix Corporation
Dealix Corporation is a leading provider of automotive Internet lead
management services. We provide automobile dealerships, large dealer
groups, and automotive manufacturers with the most efficient,
cost-effective way to acquire leads for buyers of new and used vehicles.
Dealix owns and operates UsedCars.com, one of the industry’s
oldest and most respected used car portals, and InvoiceDealers.com,
one of the industry's leading automotive portals and the largest source
of Internet sales leads processed through the Dealix Lead Trading
PlatformSM, a suite of proprietary technology
products and business solutions.
The Dealix Lead Trading Platform processes leads generated from the
millions of monthly visitors who come to our portals and to the Dealix
Lead Acquisition Network, our collection of premier partner Web sites.
Dealix delivers thousands of serious vehicle buyers to our customers
daily, boosting sales while keeping customer acquisition costs low.
