CarGurus nabs majority stake in Caroffer
- CarGurus (NASDAQ:CARG) strikes a deal to acquire a 51% interest in CarOffer at an enterprise valuation of $275M, with the ability to buy the remaining equity interest in the company over the next three years.
- CarOffer is described as an automated instant vehicle trade platform that is disrupting the traditional wholesale auction model with technology that enables dealers to bid, transact, inspect and transport seamlessly.
- The company expects the acquisition will add wholesale capabilities to CarGurus' portfolio of dealer offerings, creating a complete and efficient digital solution for dealers to sell and acquire vehicles at both retail and wholesale.
- “CarOffer is disrupting the traditional wholesale auction model in the same way that CarGurus gained our position as the leading online consumer automotive marketplace in the U.S., by leveraging technology, data and analytics to build more transparent solutions," says CarGurus CFO Jason Trevisan,
- The transaction is expected to close in January 2021 pending the requisite regulatory approvals and satisfaction of other closing conditions.
- Source: Press Release
- Wall Street analysts are bullish on CarGurus.
