New York, December 22, 2014 -- Moody's Investors Service (Moody's) affirmed Dealertrack Technologies, Inc.'s (Dealertrack) ratings upon the announcement that the company plans to acquire incadea plc, a provider of software and services to the global automotive retail and wholesale market. The total consideration for incadea's shares equals about $190 million, to be funded with balance sheet cash and borrowings under Dealertrack's revolver. Moody's expects the transaction to increase the company's adjusted Debt/EBITDA leverage by about one turn, back to the low 5.0 times level incurred in connection with the Dealer.com acquisition in early 2014. But considering the delayed expected deleveraging and the near term strain on the company's liquidity, the company is weakly positioned in its rating category, and subsequent debt funded acquisitions will pressure the rating. Moody's does recognize that adding new products and gaining a larger presence in international markets provide a broader platform for Dealertrack to continue its strong growth trajectory, and should bring adjusted Debt/EBITDA leverage below 4.0 times over the next 12 to 18 months. The rating outlook remains stable.

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