CarGurus, a digital auto platform for shopping, buying and selling new and used vehicles, said it completed the acquisition of CarOffer, purchasing the remaining minority equity interests for $75 million. Zach Hallowell, a digital wholesale market executive assumed the role of CarOffer CEO.
“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,” Hallowell said. “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 Nov. 7 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 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 CarGurus CEO Jason Trevisan. “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 for dealers to make more informed decisions in the face of shifting market conditions. Updates include the addition of prepurchase 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 said it's reduced arbitration rates by 47% and improved the time it takes to obtain and process a title by 30% year-over-year.
CarOffer will continue to operate as a stand-alone brand at its Addison, Texas, location. Hallowell takes on the role of CEO from Bruce Thompson, CarOffer's founder, who stepped down with the completion of the acquisition. With over 20 years of experience in the wholesale space, including leadership roles with Manheim Auctions and Openlane, Hallowell will guide CarOffer operations, strategy and continued integration with CarGurus.
Originally posted on Auto Dealer Today