Autobytel.com Completes Purchase of CarSmart.com

Autobytel.com Inc., the Irvine provider of car-buying services on the Internet, said Wednesday that it has completed its acquisition of CarSmart.com for $23 million in stock and cash.

Autobytel, which made the purchase to expand its business, said it paid $3 million in cash and exchanged 1.8 million of its shares, valued at $20 million based on Tuesday’s closing price of $11.13, for all the shares of CarSmart.com’s owner, A.I.N. Corp.

CarSmart.com will continue to operate independently with its chief executive, Michael Gorun, as its president, Autobytel.com said.

The transaction, first announced in October, increases Autobytel.com’s network of new and used auto dealers by 1,500 to 4,800 and expands its customer database by about 2 million people to more than 6.5 million, the company said.

The deal increases its relationships with credit unions to more than 200 institutions with more than 8.5 million members. It also provides marketing agreements with such Internet portals as America Online, AltaVista and Snap.com.

In addition to subscription fees from its dealers, San Ramon, Calif.-based CarSmart receives revenue from its automotive content, its credit union program, advertising and services such as finance, insurance and vehicle history reports.

Autobytel.com shares fell 13 cents to close Wednesday at $11 in Nasdaq trading.