TUNBRIDGE WELLS, U.K. & NEW YORK--Aug. 3, 2004-- Auto Data Network Inc. (OTCBB:ADNW), a provider of software and real-time data services to the automotive industry, today announced the acquisition of California based CarParts Technologies, Inc., 17 months ahead of the timeline originally announced.
CarParts Technologies, Inc. (CarParts) is a leading provider of eCommerce enabled software systems to the North American automotive aftermarket supply chain. Founded in 1997 and backed by four venture capital firms, CarParts provides software and eCommerce links to over 3,000 locations with 10,000 users, including leading automotive aftermarket chains such as Monro Muffler & Brake in the U.S. and Fountain Tire in Canada. In addition, CarParts has implemented eCommerce connections with four of the top aftermarket manufacturers that supply distributors represented by major buying groups such as Parts Plus, which has over 100 warehouse distributors and more than 50 discrete tire and service chains across all 50 U.S. states and Canada.
"As part of our strategy to become a global market leader in automotive software solutions, entry into the U.S. market has been high on our agenda," said Chris Glover, chairman of Auto Data Network. "Having recently assembled solutions platform businesses in the European marketplace with substantial annual revenue through our last seven acquisitions, it is now time to commence the compilation of an equivalent market leading operation in the largest automotive market in the world. Of the many companies we looked at, CarParts Technologies is the only one that would provide us with a powerful platform of Microsoft-based solutions that are already being deployed in all 50 U.S. states, and a staff of industry experts."
CarParts has developed the world's first integrated aftermarket application suite that integrates Internet purchasing inside its VAST point-of-sale (POS) and back office (DirectStep(TM) & Tradera(TM)) automotive aftermarket systems. CarParts' industry-specific standards compliant XML and .Net-based private trading platform, eCommerce Server, enables secure trading and accounting functionality that lets buyers purchase from and sell to any other approved trading partner on the network, while removing the labor intensive paperwork that has handicapped this industry's profits.
"This acquisition folds CarParts Technologies product portfolio into Auto Data Network's much broader product line," added David McCann, CEO of CarParts Technologies Inc. "We have found that our larger, market leading customers want comprehensive solution offerings from a single, strong supplier. With complementary applications available to us from Auto Data Network, such as the AutoPart product for small to medium U.S. parts distributors, our customers can select from an even wider range of Microsoft-based solutions. We are excited over the opportunities the combined strengths of Auto Data Network and CarParts will generate, which we believe will enable us to capture a larger market share, and better enable our target customers to derive profits and growth from the $265 billion U.S. aftermarket serving 220 million car and fleet owners."
About CarParts Technologies
CarParts Technologies is a leading provider of open, business automation and distribution channel eCommerce systems for the automotive aftermarket supply chain. CarParts systems are used by more than 3,000 leading aftermarket outlets including tier 1 manufacturers, program groups, warehouse distributors, tire and service chains and independent installers in all 50 U.S. states and Canada.
About Auto Data Network
Auto Data Network is a group of established companies that provide software products and services to the automotive industry. The company's main customer base is the auto dealership marketplace. This marketplace consists of approximately 78,000 dealers in North America and 92,000 dealers in Europe. The company estimates that this represents a $15 billion market for Software and Services specifically for auto dealerships. The company supplies a suite of software solutions and services that enable dealerships to run their businesses more efficiently whilst achieving considerable cost savings. The majority of the company's current solutions are focused on serving the aftermarket and finance areas of dealerships. These areas are of particular importance as the aftermarket business is responsible for 48% of a dealerships profit from 12% of their overall revenue. The second most profitable area is vehicle finance and insurance this area contributes 35% of profits from 2% of revenues.
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