BIRMINGHAM The M Group, a latter stage Venture Capital company, is smiling after StoneAge.Com was sold to publicly traded Autobytel, a deal that gave M Group a five times return on an investment made in 1999.
Autobytel paid $48.3 million in cash and stock for StoneAge, the owner of Car.Com. The deal closed on April 15. M
Group had invested $1 million in StoneAge’s only
round of funding, in October 1999. M Group was the only
investor in the round.
Autobytel issued 2.2 million shares and about
$15.3 million in cash, subject to adjustment. A source close to the deal said the pay out for M Group was two thirds Autobytel stock and one third cash. The company helps retailers sell cars and manufacturers
build brand through marketing, advertising and customer
relationship management tools and programs.
The M Group ROI on its Stoneage investment is the kind of a technology deal Michigan Venture Capital companies hope will become more of the norm as the economy improves and investment activity accelerates.
“It was a very successful exit for this company
in this specific industry,” Mondry said. “We invested
in StoneAge back in the Internet days, when the
industry was far from mature.”
Mondry said the very competitive industry drove many other dot coms out of business, but StoneAge, the owner of Car.Com, survived and grew. Mondry said StoneAge has been profitable for several years.
StoneAge was founded in 1996 by Mark
Campbell, its chairman and chief executive. Autobytel
said that Campbell will remain as a consultant,
working on new product initiatives and business
development. Irvine, Calif.-based Autobytel wouldn’t
comment on the future of StoneAge’s 70 employees,
but said that it will keep StoneAge’s office in
Detroit.
Campbell wasn’t available for comment despite repeated attempts.
Chief Financial Officer Michael Singer referred comment to Campbell.
