Autobytel.com Expands International Reach with Investment from Bilia AB and Launch of Autobytel.com
Bilia AB invests $5 million in
Updated
Jun 10, 2004 22:39:43
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Description: Irvine, CA, May 11, 1998 – Autobytel.com (), the premiere online car buying program, has entered into an investment agreement and a Letter Of Intent with Sweden-based Bilia AB. Under the investment agreement, Bilia will purchase $5 million in preferred stock in autobytel.com, inc.. The Letter Of Intent provides for the launch Autobytel.com Nordic. Bilia joins several leading international companies, including GE Capital, American International Group and Inchcape Motors International, as an Autobytel.com investor.
"After a successful three years in the U.S., Autobytel.com has launched a campaign to expand internationally," said Pete Ellis, President and CEO of autobytel.com, inc.. "We believe the Autobytel.com concept will be particularly popular in the Nordic region especially as Internet usage is so well developed there. Partnering with Bilia, a company that has demonstrated Internet expertise coupled with comprehensive experience in automotive distribution, secures Autobytel.com a leading position in the Nordic region as we continue to expand in the global market.
Recent surveys indicate that the Nordic countries have high rates of Internet usage and accompanying market penetration, paralleling that of the U.S., making this an ideal market for the Autobytel.com Program.
According to the Letter Of Intent, Bilia will have the rights to market Autobytel.com's business concept and technology in the four Nordic markets (Sweden, Norway, Denmark and Finland) and have access to its base of experience from the U.S. and other countries. Bilia will have majority ownership in Autobytel.com Nordic. The final agreement between Bilia and Autobytel.com regarding the establishment of the Nordic operation is expected to be consummated in June.
Bilia's President and CEO, Mats Jansson, comments: "With our investment in Autobytel.com we are initiating cooperation with the world's leading company in electronic car sales. Autobytel.com has established its position in the world's largest and toughest car market and is leading the trend conceptually and commercially."
"We are investing in a growth company in an industry we know well. Becoming an investor in Autobytel.com's parent company - and establishing Autobytel.com Nordic - should be seen as part of our ambition to take an active role in the ongoing restructuring of vehicle distribution. These investments we are now making give us a head start and will make us well-prepared to act with resolve in various future scenarios." concludes Jansson.
Autobytel.com was founded in 1995 and is currently responsible for over $6 billion in auto sales per year based on closing ratios derived from Autobytel.com customer surveys. Since its inception, Autobytel.com has fielded some 1.5 million purchase requests from prospective car buyers. Autobytel.com launched Autobytel.com Canada in May 1996 and recently announced the formation of Autobytel.com U.K. at the National Automobile Dealers Association (NADA) in February 1998. Autobytel.com believes its fast, efficient, low-cost car-buying process, which has experienced unprecedented success in the U.S., will be quickly adopted by both consumers and dealers worldwide.
Autobytel.com's business model benefits customers, participating dealers and car manufacturers by streamlining the typically time-consuming car buying process. Customers gain access to a marketplace that provides greater choice and lower costs in a no-haggle, no-hassle environment.
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