AutoTrader says it's business as usual following withdrawal of IPO
AutoTrader Group Inc., the nation's largest online vehicle shopping site, said it would be business as usual for auto dealers following the company's decision Friday to withdraw its $300 million registration for an initial public offering of stock.
AutoTrader, of Atlanta, is well-capitalized and won't lack the money to continue growing and rolling out new products, said spokesman Lou Laste.
AutoTrader has 20,000 new- and used-vehicle dealers that subscribe to the site and list their inventory. Another 5,000 dealers only list inventory.
Laste said the majority owner of AutoTrader, publishing company Cox Enterprises, pulled the registration to preserve the operating flexibility that has allowed the company to grow.
AutoTrader went on an acquisition binge in 2010 and 2011, purchasing Kelley Blue Book and software companies that help dealers manage vehicle inventory and market to shoppers. Acquisitions included vAuto, HomeNet Automotive and VINSolutions.
AutoTrader posted net income of $68 million in 2011 on revenue of $1.02 billion. It has not yet reported full-year results for 2012.
The company created controversy when it borrowed $400 million in April to pay its shareholders a one-time cash dividend.
The company filed for the IPO in June 2012.
Cox Enterprises created AutoTrader.com in 1997 to take vehicle listings online nationally.
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