CARG - CarGurus Finalizes Acquisition of CarOffer | Benzinga
CAMBRIDGE, Mass., Dec. 04, 2023 (GLOBE NEWSWIRE) -- CarGurus (NASDAQ:CARG), the No. 1 visited digital auto platform for shopping, buying, and selling new and used vehicles1, today announced it has completed the acquisition of CarOffer, purchasing the remaining minority equity interests for $75 million. Zach Hallowell, a seasoned digital wholesale market leader, has assumed the role of Chief Executive Officer (CEO) for CarOffer.
"With this transaction complete, we believe we are well-positioned to accelerate our momentum in delivering solutions that streamline and enhance the dealer-to-dealer and consumer-to-dealer transaction experience," said Hallowell. "I look forward to leading the integration between the CarOffer and CarGurus teams to advance these goals for the benefit of our customers."
CarGurus acquired a 51% interest in CarOffer in January 2021 and announced plans on November 7, 2023 to accelerate the purchase of the remaining stake with the intent of capturing growing product and data opportunities, along with other synergies between the two platforms. Together the companies plan to build innovative solutions that power CarGurus' development of a transaction-enabled platform that supports dealers and consumers through every stage of the automotive lifecycle.
"We believe that the headway made to bolster CarOffer operations and integrate the instant trade platform's BuyingMatrixTM technology into our solutions will provide a solid foundation for the next chapter of our work together," said Jason Trevisan, CEO of CarGurus. "As we look forward, we plan to capitalize on our ability to accelerate this progress, leveraging Zach's deep market experience and digital wholesale leadership to further enhance the platform as part of our goal to help dealers more efficiently acquire and sell inventory and support consumers in selling their cars more easily."
Through a series of operational improvements over the past year, CarOffer has enhanced tools that empower dealers to make more informed decisions in the face of shifting market conditions. Updates include the addition of pre-purchase mechanical inspections and new matrix tooling such as a 24-Hour Approval feature that allows dealers to review and approve a purchase before a transaction is processed. As a result, CarOffer has reduced arbitration rates by 47% year-over-year and improved the time it takes to obtain and process a title by 30% over ...