CarGurus, a prominent automotive retail platform, has announced its decision to fully acquire CarOffer, a digital wholesale operation, by purchasing the remaining minority equity interests for $75 million in an all-cash deal. This transaction, expected to close in December, follows CarGurus’ initial acquisition of a 51% stake in CarOffer in 2021, with the option to buy the remaining shares within three years.
The move is strategic for CarGurus, aiming to leverage the “rising opportunities” to enhance the synergy between the retail platform of CarGurus and the digital wholesale capabilities of CarOffer. This acquisition is a step towards CarGurus’ ambition to develop a transaction-enabled platform that supports dealers and consumers throughout the entire automotive lifecycle.
Jason Trevisan, CEO of CarGurus, emphasized the benefits already realized from the partnership with CarOffer and expressed the company’s intention to further integrate and scale solutions to improve the consumer and dealer experience. Trevisan, who is also participating in Used Car Week in Scottdale, Arizona, highlighted the acquisition as a timely investment to foster agility in scaling their solutions.
Post-acquisition, CarOffer will continue to operate under its brand in Addison, Texas. Bruce Thompson, the founder and CEO of CarOffer, will step down after the acquisition is complete. Zach Hallowell, recently appointed as CarGurus’ head of industry transformation, will take over the leadership of CarOffer. Hallowell’s extensive experience in digital wholesale platforms, including his role in leading Manheim Auctions’ digital marketplace at Cox Automotive, positions him as a capable leader for CarOffer’s future growth.
Thompson expressed his readiness to collaborate with Hallowell during the transition and his confidence in the team’s ability to build on the current momentum.