Dealership technology company Cars.com plans to acquire Accu-Trade, a provider of vehicle appraisal and valuation data and logistics technology, to launch online vehicle acquisition capabilities.
Chicago-based Cars.com said Tuesday it has signed an agreement to purchase 100 percent of Accu-Trade’s assets, which includes Galves Market Data and Made Logistics, for $65 million in cash. The company said it expects the deal to close in about 30 days and that it will pay an earn-out of $63 million based on performance.
Cars.com said acquiring Accu-Trade, which was formed in 2015, offers its dealership customers the ability to buy and sell vehicles, both dealer-to-dealer and consumer-to-dealer. Accu-Trade’s technology, including an instant guaranteed offer tool and VIN-based vehicle valuation and appraisal information, will be integrated across Cars.com’s online vehicle listings marketplace and dealership websites powered by its Dealer Inspire division.
“We are excited to enter into the rapidly growing multi-billion-dollar digital vehicle acquisition and remarketing category with Accu-Trade’s best-in-class valuation and appraisal technology,” Cars.com CEO Alex Vetter said in a statement. “These solutions will drive better inventory management and maximize profits for dealers while introducing a more efficient option for buying and selling wholesale inventory at scale. We will also empower millions of consumers to confidently and securely sell their vehicles online to the best buyer.”
Cars.com’s “strong consumer audience and outstanding network of dealer customers, combined with its proven track record of delivering digital solutions, makes it the ideal match to drive wider adoption of the Accu-Trade platform,” Jeff Zamora, Accu-Trade’s chief technology officer, said in a statement.
Zamora will join Cars.com’s leadership team, the company said.
