Navidec, Inc. (Nasdaq: NVDC), a leading eBusiness solutions and service provider, today announced that CarPoint, LLC, the most visited car-buying site on the Web, has agreed to terms of a transaction in which Navidec’s automotive e-commerce subsidiary, DriveOff.com, would be acquired and operated as a wholly owned subsidiary of CarPoint.
“This is a landmark transaction for our company,” said Ralph Armijo, president and CEO of Navidec. “It positions DriveOff.com as an integral part of a recognized industry leader. It also allows us to focus our management and capital resources on Navidec’s core competencies in eSolutions.”
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Expected to close by the end of July, financial terms of the agreement have not yet been disclosed. The transaction will position Navidec as a shareholder of CarPoint, which is majority owned by Microsoft. Ford Motor Company is also a minority shareholder of CarPoint.
In continuing to operate DriveOff.com’s 100 percent online auto buying solution as a wholly owned subsidiary, the terms of the transaction call for CarPoint to honor DriveOff.com’s 18-month e-services contract with Navidec. As a result, the new CarPoint subsidiary is expected to become Navidec’s largest client.
“We were very impressed with Drive Off’s best-of-breed, direct buying service and extensive dealer network,” said Jeff Dossett, CEO of CarPoint. “Navidec has created a uniquely, viable direct buying service in DriveOff.com which meets the needs and expectations of consumers, dealers, regulators and manufacturers.
About CarPoint
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By GlobalDataLaunched in October of 1995, MSN CarPoint (located at www.carpoint.com/), is the leading online automotive marketplace, receiving more than 6 million consumers each month. From product reviews and surround video features to new and used car pricing, the CarPoint site helps consumers find the car they love, at a price they can afford. With details on more than 10,000 car models and 100,000 used vehicles, visitors can research and compare cars of virtually every make and model, identify local dealers, and receive instructions for post-purchase service and maintenance.
CarPoint generates more than $650 million in auto sales each month for its 3,700 affiliated dealers nationwide, and is exclusively endorsed by the American International Automobile Dealers Association.
About Microsoft
Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software — any time, any place and on any device.
About Navidec Inc.
Navidec Inc. (Nasdaq: NVDC) is a leading provider of innovative eBusiness solutions and services. Using its proprietary NPact process, Navidec defines, builds and manages Internet, Intranet and extranet solutions that enable its clients to transform their traditional businesses into e-businesses. In addition, Navidec develops reusable software modules, packaged Internet solutions and complete eBusiness models, including DriveOff.com Inc. DriveOff.com empowers consumers to complete their entire auto purchase transaction through a network of retail and co-branded web sites. Navidec’s corporate web site is www.navidec.com. For more information contact Navidec Inc. at 303-222-1000.
Navidec management will conduct a conference call on Tuesday June 13, 2000 at 4:00 pm EST. Call 888.335.3460 to participate.
