Carbiz.com Inc. - Acquires Advanced Dealer Services, Inc.Business Editors TORONTO--(BUSINESS WIRE)--March 30, 2000 Carbiz.com Inc. (CDNX CDNX See Canadian Venture Exchange (CDNX). :CZ.) is pleased to announce that it has completed the acquisition of all of the issued and outstanding shares of Advanced Dealer Services, Inc. ("ADS"), a supplier of automobile after-market products located in Sarasota, Florida Sarasota is a city located in Sarasota County on the central west coast of Florida, USA. Its official limits include Sarasota Bay and several barrier islands between the bay and the Gulf of Mexico. . The aggregate purchase price for the shares of ADS was U.S. $1,957,820. This amount was paid on closing as follows: (i) the assumption and repayment by Carbiz of a long term loan owed to a U.S. chartered bank Chartered Bank A financial institution whose primary roles are to accept and safeguard monetary deposits from individuals and organizations, and to lend money out. The details vary from country to country, but usually a chartered bank in operation has obtained government permission in the amount of U.S. $480,000, (ii) the assumption and repayment by Carbiz of ADS trade debt of approximately U.S. $210,000, payable at the option of Carbiz in shares or over a two year term, (iii) the repayment at closing of ADS shareholder loans in the approximate amount of U.S. $325,000 by the issuance of 86,103 Common Shares of Carbiz at the closing price on March 28, 2000 of $5.50 per share, (iv) a cash payment of U.S. $75,000, and (v) the remainder of the purchase price of approximately U.S. $745,800 was paid by the issuance by Carbiz from treasury of 197,165 common shares at the closing price on March 28, 2000 of Cdn. $5.50 per share. The purchase price is subject to adjustment based on the amount of working capital in ADS as of closing. All shares received by ADS shareholders on closing have been escrowed on a "timed release" basis, with 1/3 of the shares being released on each of the first, second and third anniversaries of the closing. In 1999, ADS had revenue of U.S. $1.26-million and net tangible assets Net Tangible Assets Calculated as the total assets of a company, minus any intangible assets such as goodwill, patents and trademarks, less all liabilities and the par value of preferred stock. Also known as "net asset value" or "book value". of approximately (U.S. $698,000), with a net loss of U.S. $345,370. ADS provides software products which facilitate lending in the Buy-Here-Pay-Here financing market, which is another tier of consumer lending Consumer lending or consumer loans refers to any type of loan product that is not a mortgage; such as a car, boat, manufactured home, home equity loan, home equity line of credit, signature loan, signature line of credit, recreational vehicle, or Certificate of Deposit loans. at the dealership level and a very large market in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . ADS has a strong presence in the Chicago, Minnesota and Florida markets. The combination of Carbiz and ADS business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets is expected to generate up to $500,000 in reduced overhead. The acquisition of ADS will provide Carbiz.com with a strong United States presence and a beach-head for the rollout of the Enterprise Solution, Carbiz.com's recently launched Web-enabled product. Carbiz.com is a Toronto-based company that provides software and Internet solutions for the automobile retail industry in North America. The web site offers consumers a source for finding new and used vehicles as well as auto parts and services through the Internet. Other software products include programs for sales and forecasting, human resource management, service merchandising, scheduling and billing, financing and insurance, leasing, and parts and vehicles locators. "The Canadian Venture Exchange The Canadian Venture Exchange (CDNX) is now a defunct stock exchange having been acquired by the TSX Group in 2001 and renamed the TSX Venture Exchange. History of the Canadian Venture Exchange (CDNX) has not reviewed and does not accept responsibility for the adequacy or accuracy of this release." |
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