First American’s Credit Online To Merge With DealerTrack
— Strengthens Position as Premier Provider of Automotive Credit Services —
January 30, 2003, SANTA ANA, Calif.
The First American Corporation (NYSE: FAF), the nation’s leading diversified provider of business information and related products and services, today announced a definitive agreement to merge Credit Online, Inc., a subsidiary of First American Credit Management Solutions, Inc. (CMSI), with DealerTrack, Inc., a technology services company that enables automobile finance transactions through its DealerTrack™ platform. The closing of the transaction is pending final regulatory approval. Terms of the transaction were not disclosed.
The combination of Credit Online’s CreditConnection technology with the DealerTrack platform will further solidify First American’s position as a leading service provider in the retail automotive marketplace. As part of the transaction terms, First American will retain a significant interest in DealerTrack and will also provide credit bureau products and services to the combined network.
“First American is fully committed to our goal of being involved in every transaction that flows through the finance and insurance office of automobile retailers,” said Parker S. Kennedy, president of The First American Corporation. “By combining our strengths with DealerTrack’s, we greatly enhance our ability to introduce First American’s innovative line of business information and credit products to the leading automotive lenders and dealers in America.”
“This merger will create an integrated system that will deliver incremental value to both dealers and lenders,” said Howard L. Tischler, president and chief executive officer of First American CMSI. “Tight integration between our credit origination systems and DealerTrack’s platform will enhance our ability to provide credit automation solutions that benefit our dealer and lender customers.”
The combination of DealerTrack and Credit Online brings together leading financial institutions; best-in-class loan processing technology; and First American Credco, the premier provider of specialized credit products in the automotive retailing environment. With more than 45 million new and used vehicles sold each year, the automotive loan industry is a significant component of First American’s growth strategy.
“With more lenders and dealers coming together, all parties are expected to benefit from increased car sales by enabling more automobile dealers to offer more financing choices to their customers,” said Mark O’Neil, DealerTrack president and chief executive officer.
“We are excited about bringing First American Credco’s industry-leading single and merged credit reports to a much broader and diverse client base,” commented Anand Nallathambi, president of First American’s Credit Information Group. “In addition, we see an opportunity to bring more value to the participating retailers and lenders through the use of other First American auto-related credit information products and services, including Teletrack’s subprime credit data and TitleGuard vehicle title insurance.”About DealerTrack
With more than 19,000 dealers and 23 lenders currently connected, DealerTrack is North America's premier independent Web-based platform that automates and accelerates the entire dealer-to-lender relationship, from financing to daily information sharing. The DealerTrack platform enables application processing, credit bureau access, electronic contracting and lease comparisons—all in one easy-to-use, integrated solution. More information on DealerTrack is available at www.dealertrack.com or by calling 877-357-8725.
About Credit Online, Inc.
Credit Online is the e-commerce subsidiary of First American CMSI that credit-enables business-to-business transactions through its Internet gateway and its CreditConnection technology. Credit Online’s innovative technology instantly and electronically connects credit originators (such as automotive dealers) to credit bureaus and multiple funding sources or “electronic” lenders throughout the United States and Canada via the Internet. The service is available 24 hours a day, seven days a week, expediting the credit application approval process from days to minutes. Headquartered in Annapolis Junction, Md., First American CMSI has been a leading end-to-end credit automation solutions provider, including Internet-based online lending and leasing technology, since the company’s inception in 1987. First American CMSI also licenses credit-decisioning systems for consumer and business credit that have been the choice of North America’s largest lending institutions. For more information, visit www.cmsinc.com or call 800-790-0619.
About The First American Corporation
The First American Corporation is a Fortune 500 company that traces its history to 1889. As the nation’s leading diversified provider of business information, the company supplies businesses and consumers with the information resources that affect the major economic events of people’s lives, such as getting a job; renting an apartment; buying a car, house, boat or airplane; securing a mortgage; opening or buying a business; and planning for retirement. The First American Family of Companies, many of which command leading market share positions in their respective industries, operate within seven primary business segments including: Title Insurance and Services, Specialty Insurance, Trust and Other Services, Mortgage Information, Property Information, Credit Information and Screening Information. With revenues of $3.75 billion in 2001, First American has more than 22,500 employees in approximately 1,300 offices throughout the United States and abroad. More information about the company and an archive of its press releases can be found at www.firstam.com.
Certain statements made in this press release, including those relating to First American's position as a service provider in the retail automotive marketplace and the value to dealers and lenders are forward- looking. Risks and uncertainties exist which may cause results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements include: interest rate fluctuations; changes in the performance of the real estate markets; access to public records and other data; general volatility in the capital markets; changes in applicable government regulations; consolidation among the company’s significant customers and competitors; the company’s continued ability to identify businesses to be acquired; changes in the company’s ability to integrate businesses which it acquires; and other factors described in the Annual Reports on Form 10-K for the year ended Dec. 31, 2001 for The First American Corporation, filed with the Securities and Exchange Commission. The forward-looking statements speak only as of the date they are made. The company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.