RealTime IT News

Autoweb Soups Up Site with $20 Million Acquisition

In a move designed to bolster its automotive resources, Autoweb.com Wednesday acquired AutoSite.com, a car and truck information site, in a cash and stock deal worth approximately $20 million.

AutoSite.com is run by Automotive Information Center, a division of the Thomson Corp.'s Gale Group. Autoweb.com (AWEB) will purchase AIC for $16 million in cash and approximately $4 million in stock.

AutoSite.com provides information on new and used cars and trucks, aiming to equip potential buyers with knowledge before making a purchase. It features a comprehensive auto database, pricing tools, a troubleshooting guide, recommended pre-owned cars and trucks, repair information and an automotive encyclopedia.

AIC's resources will be incorporated into a variety of channels on Autoweb.com's site, the companies said.

"We expect this strategic acquisition to contribute significantly to our competitive presence as the leading consumer automotive Internet service," said Dean DeBiase, Autoweb.com's chairman, chief executive officer and president.

"AIC will become a key ingredient in the company's multi-channel expansion strategy, differentiating us further by enabling entry into new related online automotive markets, and adding even greater value to our existing offerings."