Ken Garff Automotive Group has purchased two Arizona stores from Earnhardt Auto Centers.
The deal was announced Thursday by Kerrigan Advisors, which represented Earnhardt Auto Centers in the sale of Earhardt Kia in Phoenix and Rodeo Hyundai in Surprise, Ariz.
These marked the second and third stores Kerrigan has sold in the Phoenix area over the last year, after having sold Bell Road Toyota to Lithia in October.
“We were pleased to advise Earnhardt Auto Centers, one of the nation’s leading dealership groups, in the sale of their valuable Kia and Hyundai franchises,” said Erin Kerrigan, founder and managing director of Kerrigan Advisors, in a news release.
“Earnhardt has built one of the strongest names in the Arizona market based on a reputation of exceptional customer and employee service, instilled by its founder Tex Earnhardt. It was important to find a buyer with the same family focus and one who would continue the Earnhardt’s legacy of caring for their customers and their employees.”
Earnhardt Auto Centers co-owner Hal Earnhardt said: “Kerrigan Advisors identified the perfect buyer for our stores, one that appreciated the value of entering the Phoenix market with great import brands.
“Kerrigan Advisors was critical to the success of this transaction. We are very pleased to know these dealerships will be run by another family-owned and operated dealership group with the same customer service focus and appreciation for employees,” he said.
Ken Garff Automotive Group chief executive officer Brett Hopkins added: “Kerrigan Advisors was instrumental to this transaction. Erin and her team do an incredible job working with their clients to make sure the sale process runs smoothly.”
Hireology, which provides recruitment CRM technology to companies in various industries, including automotive, said it has acquired EmployUs, an employee referral technology provider based out of Raleigh, N.C.
In a release, EmployUs is described as a “a modern employee referral software that empowers organizations to leverage their employees and their networks to help hire.”
Its platform helps companies reward their employees for recommending job candidates. And bringing EmployUs into the fold gives Hireology’s customers a way to hire more quickly “by converting fragmented processes into a valuable employee referral program and broader recruitment strategy.”
EmployUs works with a variety of companies in various fields, and among them is Anderson Automotive Group, a Raleigh-based dealer group with locations throughout the Carolinas.
In the news release, Hireology chief executive Adam Robinson said, “As the economy reopens in the wake of the Covid pandemic, employers face a new challenge: finding enough people to hire.
“I’m excited for our customers to see firsthand how running a successful employee referral program can help build a more robust talent pipeline and accelerate hiring,” he said.
Added EmployUs CEO Ryan O’Donnell: “Employee referrals are hired faster, stay employed longer and are more engaged compared to employees hired through other sources. By bringing our solution together with Hireology, the market leader, employee referral programs will amplify existing sourcing strategies, saving time and reducing cost.”
ACV said Tuesday it has acquired MAX Digital in a deal worth $60 million.
The company said bringing MAX Digital into the fold lets ACV now offer dealers inventory and pricing guidance as well as merchandising and sales enhancement tools.
MAX Digital’s software solutions will be run as a separate and independent unit, while keeping its current management and product line. The former chief executive officer of MAX Digital, Robert Granados, will lead the independent business unit.
ACV now has a litany of services across the used-vehicle spectrum, including ACV Auctions, ACV Transportation, ACV Capital and True360
"ACV's digital-first approach has empowered thousands of dealers to buy, sell and value their vehicles online with confidence," ACV CEO George Chamoun said in a news release. "This acquisition builds on our commitment to help dealers enhance their bottom-line with tools that enable efficient, informed decisions powered by digital intelligence. We are thrilled to be able to offer MAX Digital's services to our existing dealer partners."
MAX Digital provides SaaS-based software products that help dealers manage their inventory. The company’s flagship product is the FirstLook inventory management platform, which aids dealers in running appraisals and pricing vehicles. MAX Digital also offers merchandising products that help dealers promote and sell retail units.
"This event brings together two like-minded companies dedicated to delivering best-in-class solutions to the dealer community. With ACV's emphasis on trust and transparency, we know that the integrity of MAX Digital's platform will remain intact as well as our shared value of prioritizing customer feedback for long-term client relationships," Granados said in the release. "I have no doubt that MAX Digital becoming part of the innovative and exciting ACV family will be a huge plus for our customers and our people."
Continuing a busy season of automotive M&A — a run that includes the wholesale segment — IAA announced Monday it has acquired Marisat, Inc., which does business as Auto Exchange.
IAA will now operate Auto Exchange's business, which is based out of New Jersey and provides personal service and security for the salvage recovery industry.
“Bringing Auto Exchange under the IAA umbrella will allow us to provide premier service to our selling and buying customers in the New Jersey area,” IAA chief executive and president John Kett said in a news release. “This investment will give us the capacity to exceed the needs of the growing market and we are excited to welcome Christine Palfrey and her colleagues to the IAA team.”
Palfrey, who is the CEO of Auto Exchange, said: “We are excited to become a part of the IAA family and offer our sellers efficient and reliable movement of their salvage inventory. IAA’s cutting-edge technology and innovative tools will help create more transparency, confidence and trust for our buyers.”
Elsewhere in the space, Copart said Wednesday it has opened a location in Bismarck, N.D.
Copart Bismarck will hold sales at noon each Monday.
“Were excited to serve our customers in North Dakota from our new location in Bismarck,” said Glenn Shipman, general manager of Copart Bismarck, in a news release.
It’s not just the dealer groups that are heating up the M&A activity: June has kicked off with major moves from the auto industry software giants.
Less than a week after CDK Global purchased Roadster, Reynolds and Reynolds announced Tuesday it has bought Gubagoo, a provider of “conversational commerce” and retail solutions for dealers and automakers.
And much like Roadster does for CDK, bringing Gubagoo into the fold adds to the digital retail coffers at Reynolds, as the acquisition expands the Reynolds Retail Anywhere platform.
“Reynolds is constantly looking for ways to enhance our solutions, and with this acquisition, we are making another investment in the future of our business and our dealership customers’ long-term profitability,” said Robert Burnett, who is Reynolds’ executive vice president of corporate development and chief financial officer, in a news release.
“Incorporating Gubagoo’s digital retailing and chat technology into our Retail Anywhere platform will further empower our dealer partners to compete and win against their competition,” Burnett said.
He added: “The technology Gubagoo brings to dealers on any system makes it truly unmatched in the industry. As customers continue to push more of the buying process online, dealers’ ability to engage and actively sell in that environment will separate successful retailers from the rest.
“This acquisition also demonstrates Reynolds’ eagerness — and capacity — to invest and grow strategically.”
Brad Title is the founder and chief executive officer at Gubagoo. In a news release, he said of the news: “We are excited to join the winning team at Reynolds. We are looking forward to accelerating our pace of innovation, as we continue advancing our conversational commerce and digital retailing tools to help dealers win the future.”
CDK Global announced Wednesday that it purchased Roadster in a $360 million deal, a merger that has huge implications for the digital retail segment of automotive.
What brought the two companies together? How might Roadster's digital retail capabilities complement CDK's technology? What additional opportunities does the merger bring to each company?
CDK chief product and technology officer Mahesh Shah and Roadster founder/chief executive officer Andy Moss joined the Auto Remarketing Podcast on Thursday to answer those questions and more.
To hear the conversation, click on the link available below, or visit the Auto Remarketing Podcast page.
Download and subscribe to the Auto Remarketing Podcast on iTunes or on Google Play.
In what’s already been a busy year for automotive M&A, a purchase announced Tuesday involves the tech side of auto retail.
SpinCar, which provides digital automotive merchandising software and data, has purchased Pulsar AI, a developer of a conversational artificial intelligence platform based out of the country of Georgia.
SpinCar said the blend of Pulsar’s virtual sales assistant technology and its own digital merchandising tools will allow the company to broaden the solutions it offers dealers, giving them ways to drive further online shopper engagement and lead conversions.
SpinCar will also be able to bring its shopper data and digital content into more communication channels and consumer touchpoints, thanks to the acquisition.
“Pulsar's team of deep learning specialists, developers, data scientists, linguists and operations personnel have developed some of the most powerful conversational AI capabilities available today,” SpinCar co-founder and chief executive Devin Daly said in a news release.
“We are thrilled to welcome them to the SpinCar family, and we look forward to leveraging Pulsar's expertise and technology innovations to deliver even greater business results for dealers of all sizes and types,” Daly added. “This acquisition will enable us to accelerate our platform expansion efforts to meet growing demand for digital capabilities that deliver more engaging and personalized experiences to vehicle shoppers at every touchpoint.”
Dachi Choladze, Zaal Gachechiladze and Sopo Chkoidze founded Pulsar five years ago Tbilisi, Georgia.
Among its investors are Great Oaks Venture Capital and Ridge Ventures.
“SpinCar has established itself as a trusted solution provider and partner to thousands of auto dealers around the world,” said Choladze, who is Pulsar’s co-founder and CEO, in a news release.
“We share a common belief that technology can be used to drive operational efficiencies while also delivering a better shopping experience. Joining SpinCar will enable us to accelerate the development of innovative new applications that leverage the power of conversational AI.”
After purchasing a minority stake in the company in early 2020, CarMax said Thursday it will acquire the remaining shares of Edmunds.
The retailer invested $50 million in the online car shopping guide in January 2020, acquiring a minority stake.
The deal for CarMax to acquire full ownership of Edmunds is expected to close in June, with a “purchase price that implies an enterprise value of $404 million, inclusive of CarMax’s initial investment, which we expect to be paid in a combination of cash and stock,” the retailer said in a news release.
“We are excited to bring the iconic Edmunds brand, history of innovation, and exceptional technology and creative talent into the CarMax family,” CarMax president and chief executive officer Bill Nash said in the release.
“Our partnership to date has proven to be an outstanding combination as we’ve developed innovative products and advanced our shared commitment to delivering the highest quality online experience,” Nash said. “We look forward to supporting and investing in Edmunds’ continued growth and are excited about the many opportunities ahead for both CarMax and Edmunds.”
Edmunds will continue operating independently when the deal closes. Its focus will continue to be on “delivering confidence to consumers and exceptional value to its dealer and OEM clients,” according to the release.
“For over 50 years, Edmunds has been delivering value to automotive shoppers, making the entire car-buying process easier,” Edmunds CEO Avi Steinlauf said. “We have found a great partner in CarMax, with whom we look forward to continuing to grow and support our shoppers, as well as our dealer and OEM partners, while providing continuous innovations to the market. I am excited about the next chapter in Edmunds’ evolution.”
Since CarMax’s investment in Edmunds more than a year ago, the companies have partnered on several projects. Among those was one that provided online instant offers for consumers selling used cars.
“The instant offer products on Edmunds.com and CarMax.com have put CarMax in the position to become the largest online buyer of used autos from consumers,” Nash said.
Future collaborations between the companies are in the pipeline, CarMax said in the release
RumbleOn Inc., an ecommerce company using technology to aggregate and distribute pre-owned vehicles to and from consumers and dealers, has entered into a definitive merger/equity purchase agreement with powersports dealer, RideNow.
The agreement creates what the companies describe as the only omnichannel customer experience in powersports and the largest publicly traded powersports dealership platform.
The companies say the integration of RideNow’s footprint and retail brand with RumbleOn’s technology platform will transform the what they say is the nation’s largest powersports dealer into the first and only omnichannel powersports platform in North America.
The companies say their combined company will have a dominant position in a $100-plus billion market.
With the end-to-end platform, the combined company will be able to reach more consumers in what they describe as a secularly growing, yet still highly fragmented, market. That market is benefitting from changing consumer behavior, they say.
Providing a “strategic rationale,” the companies said powersport vehicle demand continues experiencing strong growth.
That is accelerated by consumer lifestyle changes and advanced vehicle innovation. Access to affordable pre-owned vehicles attracts new riders, according to the companies.
The proposed transaction combines a technology leader in online acquisition and distribution of powersports vehicles with what they describe as the largest traditional brick and mortar retailer in powersports.
RideNow operates more than 40 full-service retail locations in 11 states. RideNow sold 45,527 powersport units last year. That included ATVs, UTVs, motorcycles, snowmobiles, and personal watercraft. It generated approximately $899.4 million in total revenue, $90.3 million in net income and approximately $96.6 million in adjusted EBITDA.
RumbleOn’s said its ecommerce platform provides an efficient, timely and transparent transaction experience, without leaving home. RumbleOn said it offers dealers and consumers a friction-free experience without geographic boundaries.
The companies say the combined company will offer the fastest, easiest and most transparent transaction process available to consumers nationwide. That, combined with proprietary pre-owned sourcing, disrupts the customer search and purchase experience for powersports enthusiasts, the companies say, and that is the case online and in-store.
The combined company will drive organic growth by combining and scaling the legacy RumbleOn and RideNow models. It will also be positioned to further consolidate what the companies say is a highly fragmented powersports industry.
Bringing more than 70 additional years of combined experience in the vehicle retail industry, RideNow’s co-principal owners and co-founders Mark Tkach and William Coulter join RumbleOn’s executive team, Marshall Chesrown, Steve Berrard, and Peter Levy, who have a combined 80-plus years of experience. Tkach and Coulter will also join the RumbleOn board of directors at closing.
“We are creating the only omnichannel solution in the powersports industry – offering an unparalleled customer experience for outdoor enthusiasts across the country,” Chesrown, who is the RumbleOn chief executive officer, said in a news release.
Chesrown also said, “RideNow’s significant physical retail platform provides the missing piece of a ‘bricks and clicks’ strategy for RumbleOn, enabling us to reach consumers wherever they want to shop, whether online, offline, or both. For us, this transaction is about unlocking incremental sales, capturing additional monetization opportunities such as parts and services, and consolidating a fragmented industry to drive efficiency and improve the customer experience.”
Chesrown went on to say, “For our customers, this is about offering the most robust selection of inventory through a simple, safe, hassle-free and flexible experience nationwide.”
“We are thrilled to be joining Marshall and the rest of the RumbleOn team as we gear up to enable more consumers to shop with us through the first omnichannel customer experience,” Tkach of RideNow.
Tkach also said, “We are excited to begin leveraging both companies’ capabilities to expand our combined offering. From adding financing options with RumbleOn Finance to exploring the opportunity to open pre-owned retail stores, RumbleOn’s technology and ecommerce presence will provide us access to a nationwide audience and high demand pre-owned inventory. Combining the proprietary technology platform, online aggregation and distribution, nationwide logistics network and the scale and physical footprint of these two companies will give more powersport enthusiasts across the country access to our robust inventory.”
The business combination is expected to close in the second or third quarter.
The landscape of new (and often digital) entrants to the used-car retail space has reached an interesting point.
Companies that were startups just a few years ago are now publicly traded and making acquisitions to boost their arsenal.
Case in point: Vroom, which has done both the last six months.
The online auto retailer, which launched its initial public offering in June, announced Tuesday it had signed a deal to acquire CarStory, an acquisition Vroom CEO Paul Hennessy could “transform the used auto market” by combining its digital retailing capabilities with CarStory’s market data and analytics capabilities.
“We’ve been working with CarStory for the past two years, leveraging their data to help us buy and sell vehicles with precision,” Hennessy said in an emailed Q&A.
“Working together in that capacity demonstrated how we could impact the market as a single company, empowering both consumers and businesses with the best predictive analytics, data and AI in the auto industry,” he said. “The abilities we have at Vroom as a leading digital retailer of pre-owned vehicles and CarStory's valuable, AI-powered market data give us a unique opportunity to transform the used auto market.”
CarStory provides artificial intelligence-based analytics and digital services to the auto retail industry with the aim of providing the “most complete accurate view of predictive market data,” according to a news release.
Vroom’s deal to acquire CarStory is worth approximately $120 million, subject to adjustment, and is comprised by roughly 60% cash and 40% Vroom common stock. The exact cash-stock split will be determined when the deal closes, which is expected to happen in January.
Asked how having CarStory's analytics/data in the fold might help Vroom, Hennessy said: “Vroom currently uses CarStory’s data to help us buy, sell and merchandise inventory by utilizing their data as a key input to our data science pricing algorithms.
“We’ll continue to use the data in this way as well as look for additional opportunities to bring greater predictive knowledge to pretty much everything we do in our business,” he said.
