The Cobalt Group (Nasdaq:CBLT) announced today that it has added $15 million in private equity funding to finance the continued development of e-business products and services for its automotive dealer and manufacturer customers.
The $15 million investment results from a private equity agreement announced in June with Warburg Pincus Equity Partners, L.P., First Analysis Venture Capital, and Third Point Partners L.P. Cobalt will use the capital for new product development, investments in technology infrastructure, and general working capital.
“Cobalt is leading the automotive industry, the nation’s largest retail sector, onto the Internet,” said Joe Landy, managing director of Warburg Pincus. “Warburg has invested in the automotive industry for years, and we have a long-term view toward the tremendous amount of opportunity in this market. Cobalt’s substantial success to date in gaining a large base of dealer customers provides a solid foundation for even greater accomplishments in the years to come.”
“First Analysis has been an investor in Cobalt since 1997 and we have been consistently impressed with the company’s growth, its superb management team, and its commitment to providing superior products and services in partnership with automotive retailers and manufacturers,” said Mark Koulogeorge, managing director of First Analysis Venture Capital.
Cobalt’s customer base is growing steadily as the automotive industry learns how to integrate the Internet into its efforts to attract and serve customers and find new efficiencies in business-to-business interactions.
“Cobalt’s growth has been fueled by a long standing belief that the Internet is a powerful tool that is complementary to the partnership between automotive dealers, manufacturers, and consumers. This $15 million investment represents a significant vote of confidence from our original investors in Cobalt’s business plan,” said John Holt, president and CEO of The Cobalt Group. “These additional funds give us the financial strength to continue growing a company that’s built to last, one that’s committed to meeting its customers’ increasing demands for sophisticated, industry-specific e-business products and services.”
About the Cobalt Group
The Cobalt Group(TM)(NASDAQ:CBLT), headquartered in Seattle, is a leading provider of e-business products and services that help automotive dealers and manufacturers effectively manage their businesses online. Cobalt’s suite of e-business solutions includes Web services, Web site hosting, e-commerce applications, Internet-based customer relationship management applications, data management, and best practices training and consulting.