Autobytel to Buy Rival Online Shopping Service Autoweb

Autobytel.com Inc. agreed Wednesday to buy rival Internet car-shopping service Autoweb.com Inc. for about $14.19 million in stock to expand its customer base.

“Our combined strengths will allow us to extend our No. 1 market share further while broadening our customer base,” said Mark Lorimer, chief executive of Irvine-based Autobytel.

The combined company will have annual sales of more than $100 million and about 2 million visitors to its Web sites each month, the companies said. It will have more than 7,000 dealers and 24 auto makers as customers, they said.

Under the deal, each of Autoweb.com’s 29.5 million shares will be exchanged for 0.3553 of an Autobytel.com share. Autobytel.com closed off 14 cents at $1.35 on Nasdaq, putting the value of Autoweb.com shares under the deal at 48 cents. Autoweb.com shares rose 11 cents, or 38%, to close at 40 cents, also on Nasdaq.

Internet retailers such as Autobytel.com and Autoweb.com compete with auto makers and dealers for growing online sales of cars and trucks. Yet neither company has made a profit since their initial public offerings in March 1999.

Autoweb.com’s shares have fallen about 94% in the last year as the company struggled with losses and cut its work force 25%. Autobytel.com shares have declined 79% in the last year.

Lorimer would be chief executive and president of the combined company, while Autobytel.com Chairman Michael Fuchs would retain that post. Jeffrey Schwartz, chief executive of Santa Clara, Calif.-based Autoweb.com, would be vice chairman.