Automotive marketplace platform Cars.com is finalizing a deal to acquire 100% of the assets of Accu-Trade for $65 million in cash at closing, with the chance for additional cash and stock depending upon reaching particular financial thresholds.
Accu-Trade’s assets include Galves Market Data and MADE Logistics, which includes real-time, VIN-specific appraisal and valuation data, according to a press release on Tuesday (Feb. 8). Cars.com expects to make a $63 million earn-out payment, which could be higher or lower. The deal is anticipated to close in 30 days.
Alex Vetter, Cars.com CEO, said Accu-Trade is the perfect company for Cars.com to jump into the “rapidly growing multibillion-dollar digital vehicle acquisition and remarketing category,” with its state-of-the-art tech for both appraisals and valuations.
“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,” Vetter said.
Buying Accu-Trade will give the Cars.com platform the ability to enable dealers to buy and sell inventory at scale “across a dealer-to-dealer and consumer-to-dealer network.” This will help dealers move inventory and boost profits by matching cars to end-users.
Dealers will be able to get an instant guaranteed offer on the Cars.com platform. With Accu-Trade’s “proprietary VIN-specific valuation and appraisal technology,” dealers will source inventory directly from the “tens of millions of high-intent, in-market shoppers” who explore the Cars.com platform each quarter. Quarterly, 142 million people visit Cars.com, with 247 million visitors across its Dealer Inspire dealer websites.
Sellers get real-time transparency and consistency regarding the guaranteed value, and from there they will be directed to the best buyer and can complete the entire transaction online. Cars.com is also planning to roll out a new sell-it-yourself option on its marketplace.