Autobytel Buys AutoWeb In All-stock Deal

(RTTNews) - Online automotive services provider Autobytel, Inc. (ABTL) said Thursday that it has acquired AutoWeb, Inc. in an all-stock and warrant deal.

Prior to the acquisition, Autobytel owned about 15% of the outstanding capital stock of AutoWeb.

The deal consideration consists of about 170,000 newly issued shares of Autobytel series B junior participating convertible preferred stock and warrants exercisable for about 150,000 shares of series B preferred stock.

Founded in 2013, AutoWeb provides car dealers and OEMs with an auction-based click marketplace of highly targeted, low-funnel car buyers derived from AutoWeb's proprietary search engine technology. AutoWeb's pay-per-click bidding platform delivers in-market car shoppers to dealer and OEM sites, and maximizes click revenue opportunities with real-time applications targeting the multi-billion dollar paid search vehicle market.

In connection with the acquisition, Matias de Tezanos, Jose Vargas and Robert Mylod have been appointed to the Autobytel board of directors. Matias de Tezanos, Autoweb's CEO and director, was also appointed to the new position of Autobytel's chief strategy officer.

Autobytel also said it expects third quarter revenue to be about $39.0 million, up 43% year-over-year. Analysts polled by Thomson Reuters currently expect the company to post revenue of $35.18 million for the third quarter.

Autobytel raised its full year 2015 revenue guidance to a range of $132 million to $134 million from its prior guidance of $128.0 million to $132.0 million.

However, the company lowered its full year 2015 adjusted earnings outlook to a range of $1.17 to $1.23 per share from its previous outlook of $1.21 to $1.27 per share, mainly due to the additional shares outstanding as a result of the AutoWeb deal. Autobytel expects the acquisition to be accretive to its adjusted earnings per share in 2016.

Analysts currently expect the company to earn $1.25 per share on revenue of $129.45 million for the full year 2015.