Cox Automotive, which in 2021 transferred its Canadian operations to the U.S. and parted ways with its Canadian president, told customers on Wednesday it is selling the majority of its Canadian division to Trader Corp.
The move means Canadian operations of dealer.com, Kelley Blue Book, as well as dealership software providers Dealertrack, Digital Retailing, VinSolutions and XTime will transition over the coming months to Trader, “a trusted partner of ours for many years,” Jack Sulymka, general manager, national accounts and operations, of Manheim Canada, said in a letter to clients. Manheim Canada is a Cox subsidiary focused on online wholesale automotive auctions and digital remarketing.
"This deal also does not impact any of our businesses outside of the retail brands in Canada," Cox told employees in a memo.
Financial terms of the deal weren't disclosed.
In the letter, Sulymka said Manheim, vehicle transportation specialist Ready Logistics, and finance company NextGear Capital will remain part of Cox Automotive, “and we will look forward to continuing to serve our Canadian clients in alignment with our North American strategy.”
After the U.S. merger in September, 2021, Maria Soklis, president of Cox Automotive Canada and Brazil, “elected to leave” the company, according to a statement from company president Martin Forbes at the time. She joined the company in 2015.
Based in Toronto, Trader bills itself as a “ leading digital player in Canadian automotive, boasting the top marketplaces AutoTrader.ca, AutoHebdo.net and LesPAC, which cumulatively generate 25+ million monthly visits.”