Despite only three weeks remaining in 2021, this year’s M&A activity still is going strong with the newest development coming on the vendor front.
On Monday, 360Converge, a provider of communication workflow automation in automotive, announced the acquisition of Valuinsight, an inventory analysis platform that can enable automated equity mining for inventory acquisition.
The company said the addition of Valuinsight inventory management features to the existing 360Converge communication platform will increase dealerships’ texting and emailing capabilities, while decreasing the labor needed to effectively monetize the store’s existing customer base.
By combining deep vehicle inventory analytics with the 360Converge’s communication platform, the company explained its dealership clients can receive the benefit of pinpoint accurate information on which vehicles are moving from their lot and — perhaps more importantly — which vehicles are not.
By leveraging this information, 360Converge’s SalesDrive solution can target customers coming in for service with text to engage customers at the highest point of conversion during their service visit. The company said the result is an increase in vehicles being purchased directly from the service drive.
According to 360Converge, dealerships using this automation technology are already seeing a 20-23% increase of customer engagement and are purchasing 10 to 20 vehicles directly from their own service drive.
In addition, when paired with 360Converge’s communication tools, the company said dealers will have more opportunities to sell warranties beyond the transaction, turn more inventory, and deliver the right message at the right time to each customer.
“This acquisition marries two of the most important elements needed for automotive sales success today, inventory acquisition and messaging, to give consumers the exact information they are looking for when they’re ready to buy,” said Todd Smith, chief executive officer of 360Converge.
“Dealerships are wasting human capital by targeting everyone with an equity/buyback message. Dealerships using our SalesDrive application will only be talking with interested customers while also building a deeper connection with their existing customers,” Smith continued in a news release.
The company went on to mention that the acquisition advances 360Converge’s growth strategy in the market by expanding its capabilities in the multi-billion-dollar data acquisition arena.
“Data acquisition continues to be a hot spot across automotive and other industries as today’s digital consumer demands more personalized experiences and faster access to information,” 360Converge said.
In addition to the benefits to 360Converge’s existing customers, the company added that the acquisition strengthens its data modeling and builds additional revenue streams, while greatly expanding the company’s personalization at scale communication capabilities.
Scott Dreisbach, Valuinsight’s owner before the acquisition, offered his perspectives on the announcement.
“I am very pleased to announce the acquisition of the Valuinsight suite of products by the great team of talented people at 360Converge,” Dreisbach said. “Our core products will continue help dealership operations across the country to increase their bottom line.
“Precision inventory management has been my lifelong passion and will continue to live on coupled with the great team of 360Converge,” he went on to say.
For more information about 360Converge, visit www.360converge.com.
NextCar, which is the Scott Painter- and Georg Bauer-led fintech and insurtech vehicle subscription platform, announced last week it has finished the acquisition of the Autonomy brand and intellectual property library.
NextCar purchased Autonomy from Micro Focus.
The deal includes the Autonomy.com global domain along with various country and subdomain extensions, plus trademark applications, awards goodwill and related IP.
Autonomy had been in the Hewlett-Packard company, eventually bought up by Micro Focus.
Painter, who is co-founder and chief executive officer of NextCar, said in a news release: “Autonomy, which stands for freedom, is more meaningful post-pandemic. Mobility is at the core of what makes us feel free, so access to it should be flexible, easy, and affordable.
“Customer acquisition cost is one of the critical factors in determining the success of any business. Going to market with a compelling brand that people can relate to in tandem with a magical product and consumer experience creates a moat for any business and is the foundation for scaling this business profitably,” Painter said.
Bauer, who also co-founded Fair with Painter, is NextCar’s president. In the release, he added: “Easy and affordable access to mobility is a challenge for consumers everywhere.
“The ability to immediately become a global brand through our acquisition of an entire IP library that is inclusive of assets in over a dozen countries is an incredibly valuable strategic asset,” Bauer said. “We believe Autonomy will be a pivotal financial and insurance innovation through which consumers get access to a vehicle.”
Like many dealer groups, the leadership at Carter Myers Automotive, CarMax and Victory Automotive Group barely had time to enjoy some Thanksgiving turkey, as they were involved either in store acquisitions or major philanthropy efforts.
Beginning first with the Carter Myers Automotive (CMA), the 97-year-old Virginia-based family and employee-owned dealer group announced through a news release that it has purchased Miller Auto Group, which comprises two franchises in Winchester, Va., and three in Martinsburg, W. Va.
CMA said that Winchester-based independent dealership CrossPointe Motor Cars is included in this transaction, too.
As a result of the purchases, CMA will now have 20 locations representing 18 automakers, with about 1,000 employees overseen by Liza Myers Borches, who is the great-granddaughter of group founder H. Carter Myers Sr.
Miller Auto Sales was founded in 1955 as a used-car company by James M. Miller, Sr. After his death, his twin sons, George and John, took over the business and expanded it to include new-model franchises for Honda, Chevrolet, Chrysler Dodge Jeep Ram, Hyundai and Toyota.
“Liza and CMA share our commitment to our communities, and our associates will now have the opportunity to own a piece of the firm by joining CMA,” said John Grist, Miller Auto Group vice president and chief operating officer.
“We’ll also be able to use CMA’s purchasing power to extend our existing inventory of new and used vehicles, as well as our service and parts business for all makes and models. To achieve those objectives, we will hire more technicians, salesmen, and parts employees, all of whom will be eligible for company shares,” Grist continued.
California Subaru store changes hands
Meanwhile out in California, a Subaru store in operation for more than three decades has new ownership.
According to a news release from Performance Brokerage Services, the firm was involved in the sale of Albany Subaru in California from John Nakamura to Jeffrey Cappo of Victory Automotive Group.
Albany Subaru was established in 1992 by Nakamura and his partner, Laurie Bush
“Our dealership was and always is our baby,” Nakamura said in the news release. “To say that we were a picky seller is an understatement. There were so many qualitative elements to our deal, such as our valued employees, our relationships with our business partners, and the very important element of winning on both sides of the table for both buyer and seller.”
Headquartered in Canton, Mich., Victory Automotive Group was established by Cappo, who is the current owner and president and acquired his first dealership in 1997 with the purchase of a small Nissan store in Morristown, Tenn.
During the next 24 years, the group expanded its footprint across nine states, representing some of the most desirable brands in the industry. This acquisition marks the 45th dealership location for Victory Automotive Group, who ranks as one of the Top 15 dealer groups in the U.S., selling nearly 60,000 retail units annually.
This is the group’s second Subaru dealership in California.
The dealership will remain at its current location at 718 San Pablo Avenue in Albany, Calif.
Performance Brokerage Services president Moshe Stopnitzky said, “This was an exceptional project for us. Albany Subaru is a special dealership, owned and managed by very special people. The buyer will benefit from a tremendous goodwill built over nearly 3 decades by John Nakamura and Laurie Bush. Goodwill with the employees, customers, and with the community. We are very excited to have been part of this transaction.”
CarMax plan for Giving Tuesday
Every year, millions of Americans participate in what’s known as Giving Tuesday — a day of global giving held on the Tuesday following Black Friday.
To help the effort, CarMax and the CarMax Foundation announced a major expansion of their annual Giving Tuesday initiative. Starting on Tuesday, the CarMax Foundation is providing all 27,000 CarMax associates with a $50 credit — or electronic “Care Card” to donate to an eligible nonprofit of their choice.
With full associate participation in this initiative, the foundation said it is positioned to donate more than $1 million to nonprofit organizations across the United States, potentially doubling CarMax’s #GivingTuesday donations from 2020.
CarMax recapped that this initiative launched last year to help associates give back to their communities when the pandemic limited in-person volunteering. To participate, associates log into the CarMax Associate Giving Portal and designate a nonprofit to receive the funds.
This year’s Giving Tuesday campaign builds on last year’s momentum and aims to make an even greater impact by doubling the amount associates are allocated to donate to the nonprofit of their choice.
In 2020, the CarMax Foundation donated $650,000 to causes selected by associates, supporting organizations in 1,800 cities across the United States.
“Nonprofits in our communities need support now more than ever and we’re honored to empower associates to give back to the nonprofit that aligns most with their passions for Giving Tuesday,” said Rosey Sanders, president of the CarMax Foundation.
“Last year’s initiative was an incredible success, helping 6,500 organizations across the country, and this year associates will double the impact with double the donation from our foundation,” Sanders added.
Each Care Card will be valid for donation through Jan. 31. Any unredeemed Care Cards will be directed to support the CarMax Associate Disaster Relief Fund, according to the company.
While not quite on the same level as the bold acquisition of the Larry H. Miller Dealerships and Total Care Auto, Asbury Automotive Group is continuing to build its dealership portfolio in the Rocky Mountains.
According to a news release from Performance Brokerage Services that helped to broker the transaction, Asbury added to its footprint in Colorado by purchasing Arapahoe Hyundai and Genesis of Arapahoe in Centennial, Colo., from the Zinsmeister family.
The announcement highlighted that Arapahoe Hyundai has been serving its community for almost 20 years and has been the No. 1 Hyundai volume dealer in Colorado for 14 years in a row.
The dealership has been family owned and operated by the Zinsmeister family, which includes a father and son who are better known to their customers as “Z” and “Big Z.”
The dealership will remain at its current location at 9899 East Arapahoe Road in Centennial.
After going through the Larry H. Miller acquisition, Asbury vice president of corporate development Randy Callison described the process with Jonny Mecham, one of the Rocky Mountain partners for Performance Brokerage Services and the exclusive agent for this transaction.
“We’ve known Jason Stopnitzky at Performance Brokerage Services for a long time, and they’ve always been a trusted resource for us,” Callison said in the news release. “They have a wealth of experience and truly understand the complexities of the business. This was our first time working with Jonny and his father, John Mecham, and they approached things with the same expertise. They did a terrific job of bringing both parties together from start to finish, tackling issues efficiently.
“I think ‘Z’ and Jonny’s collective teamwork ensured one of the easiest transitions I’ve had the pleasure to be a part of. I would confidently recommend Jonny and John Mecham and Performance Brokerage Services and look forward to working with them again in the future,” Callison went on to say.
David “Z” Zinsmeister explained why his family made this decision.
“My wife and I met Jonny and John Mecham of Performance Brokerage Services for the first time over lunch during one of their visits to Denver. We instantly felt their sincere desire to achieve our family's goals and had our best interest at heart,” Zinsmeister said.
“My dad, ‘Big Z,’ was looking to retire and I aspired to spend my days with my young family. John described loving the moment when a former dealer calls to tell him when they first experience ‘being where they are’ and being present in their life outside of work for the first time after selling their store. This resonated with me instantly,” Zinsmeister continued.
“From there, Jonny took the reins navigating us through the finish line with an offer even better than we had hoped, while also developing what is to be a great friendship along the way. Asbury came ready with a team of fast and efficient representatives, and I was determined to take on the challenge of keeping up with them. Jonny and John never missed a beat and there would never have been an Asbury/Arapahoe Hyundai deal without them and Performance Brokerage Services,” Zinsmeister went on to say.
IAA reinforced its European resources on Friday via an acquisition.
According to a news release, IAA — the presenting sponsor of Auto Remarketing’s 40 Under 40 honorees who will be recognized during Used Car Week — announced it has signed an agreement to acquire the stock of SYNETIQ, a leading integrated salvage and vehicle dismantling company in the United Kingdom for £225 million.
IAA said it will acquire the stock of SYNETIQ through its indirect wholly owned subsidiary IAA International Holdings Limited.
Founded in 2019 from the merger of four entities, SYNETIQ provides salvage auction services for insurance companies, accident management companies and other public and private sellers. In addition, the company is a leading seller of reusable parts that are dismantled from salvage vehicles and reissued into the automotive supply chain.
SYNETIQ has 14 locations and approximately 500 employees throughout the United Kingdom. IAA highlighted that the business has capabilities covering the entire salvage journey, from collection to vehicle auction or dismantling, and optimizes vehicle value through parts and material recycling.
For the 12 months ended Sept. 30, the business generated revenue of approximately £154 million. The transaction is expected to be immediately accretive to earnings per share, according to IAA
“We are very excited about the acquisition of SYNETIQ. This transaction significantly expands our business in the United Kingdom from both a scale and portfolio perspective, supporting the overall IAA growth strategy,” IAA chief executive officer and president John Kett said in the news release.
“SYNETIQ’s management team and employees have done a tremendous job of using innovation to maximize value for their customers,” Kett continued. “We also know that reusable parts are increasingly of interest to U.K. insurers as they look to satisfy customer needs and meet their environmental goals.
“SYNETIQ’s focus and expertise in this area is a true differentiator that is consistent with our focus on sustainability in the UK market and beyond. We look forward to welcoming the SYNETIQ team to IAA,” Kett went on to say.
Under the terms of the agreement, IAA will pay £186 million at closing, with the remaining £39 million contingent upon receipt of the merger control approval from the UK Competition and Markets Authority (CMA).
IAA explained that the final consideration to be paid is subject to working capital and other adjustments. The company added that the transaction will be financed through a combination of existing balance sheet cash and existing credit facilities.
IAA also mentioned that closing is expected to occur by the end of October. IAA and SYNETIQ will continue to operate independently in the market until clearance of the transaction is obtained from the CMA.
“We are delighted and proud that IAA has recognized the great work the SYNETIQ team is delivering to change the vehicle recycling industry, and deliver optimized financial and environmental returns for our clients,” SYNETIQ chief executive officer Tom Rumboll said in the news release. “Now we are presented a fantastic opportunity for continued growth supported by IAA’s global footprint, robust marketplace and innovation.
“From the proud and rich history of the businesses that formed SYNETIQ to what our team has achieved since, this is another milestone moment and the start of the next phase of an exciting future for our business,” Rumboll went on to say.
XMS Capital Partners is serving as financial advisor to IAA. O’Melveny & Myers and Walker Morris are serving as IAA’s legal advisors, and Deloitte is serving as accounting and tax advisor.
EY is serving as exclusive financial advisor to SYNETIQ, and KPMG Law and Euclid Law are serving as legal advisors.
KAR Global said Thursday it has completed its $450 million all-cash purchase of CARWAVE.
The purchase of the online wholesale platform, initially announced in August, adds to the company’s “fast growth in the dealer-to-dealer segment, accelerates profitability, positions the company to achieve its long-term goals and enhances the company’s differentiated combination of digital marketplaces and physical network,” KAR said in a news release.
“This acquisition adds a leading digital platform on the West Coast to our dealer-to-dealer segment — solidifying our competitive position and improving profitability across our dealer-to-dealer offerings,” KAR chief executive officer Peter Kelly said in the release.
“With the addition of CARWAVE to our successful digital marketplaces — including ADESA and BacklotCars — as well as our broad network of vehicle logistics centers, we are able to meet the needs of dealers in any market at any time,” Kelly said.
CARWAVE is a California-based dealer-to-dealer online wholesale marketplace founded in 2009. Its network of dealer customers includes stores in Arizona, California, Nevada, Oregon and Texas.
The platform allows dealers to take trade-ins and aged frontline inventory and quickly wholesale them, while also sourcing vehicles to purchase.
“We’re excited to leverage the capabilities of KAR, ADESA and BacklotCars to bring even better outcomes to our customers, building on what our customers love while realizing the full power of the KAR ecosystem,” CARWAVE co-founder and president John Lauer said in a news release.
“With the combination of our networks and dedication to superior customer service and outcomes, our trusted dealers are the real winners here — they’ll have expanded access to the top low-cost, low-stress and hassle-free used vehicle digital marketplaces.”
KAR said that key leaders at CARWAVE, including John Lauer and co-founder Bill Lauer, are staying on with the team.
Integration has begun between the two companies. However, KAR said, “no immediate” changes have made in terms of products, pricing or customer agreements for either KAR or CARWAVE.
CarMax and Sheehy Auto Stores are both expanding, but in different ways.
While CarMax outlined its aggressive hiring strategy for the remainder of the year, Sheehy added two more rooftops to its portfolio of dealerships located near Washington D.C., Baltimore, Hagerstown, Md., and Richmond, Va.
According to a news release from Performance Brokerage Services, the firm aided in the sale of Ultimate Subaru and Ultimate Buick GMC of Fredericksburg, Va., from Randy Harris to Vince Sheehy of Sheehy Auto Stores.
“In preparing to look for additional growth opportunities, we worked with George Chaconas of Performance Brokerage Services to find the right opportunity in the right market,” Vince Sheehy said in the news release. “After many inquiries, George identified a dealer who was interested in selling and worked with both parties to ensure a smooth transaction. Throughout the process, George was engaged and willing to do whatever was needed bring the deal to a close.”
Sheehy Auto Stores began as a small family-owned Ford dealership in 1966. Now Sheehy serves customers in Maryland, Virginia and the nation’s capital with franchises such as Honda, Nissan, Lexus, INFINITI, Toyota, Volkswagen, Hyundai, Mazda and Harley-Davidson.
Chaconas, the Southeast partner for Performance Brokerage Services, shared that his relationship with Harris spans almost six years.
“After visiting him at his store in Fredericksburg, I knew he would consider selling one day,” Chaconas said. “I reached out to Randy on behalf of Vince Sheehy of Sheehy Auto Stores since I previously helped Vince acquire Ron Rosner's Toyota stores in Fredericksburg and Stafford. Eventually, through a lot of persistence and follow-up, Randy agreed to consider selling and was very comfortable and open when speaking to Vince. We soon agreed on a price and terms acceptable to all parties.
“Through a challenging closing process due to the pandemic and a slow buy-sell approval from the manufacturer, we were very grateful to finally get to the closing table,” Chaconas continued. “I wish Randy the best in his retirement, although he mentioned he still has a few years left in the automotive industry. It has been an honor and privilege to work with Vince and his team at Sheehy Auto Stores to help them acquire another strategic dealership in their existing market and continue to grow their footprint.”
Following the sale, Harris offered these anecdotes in the news release.
“I met George Chaconas of Performance Brokerage Services many years ago when I was looking to expand my portfolio,” Harris said. “We developed a good relationship and he continued to stay in touch over the years, eager to assist when the time was right to exit. He reached out at the right time with a very qualified buyer.
“After telling George to ‘show me the money,’ we had smooth negotiations. Thanks to George Chaconas, I now get to travel as much as I like,” Harris went on to say.
According to the announcement, the dealerships will remain at their current locations at 5150 and 5160 Jefferson Davis Highway in Fredericksburg.
This deal is helping Performance Brokerage Services maintain its pace for a record-breaking year, as the firm expects to consummate more than 70 transactions in 2021.
CarMax looks to fill 3,700 positions by year end
Meanwhile, the theme at CarMax nowadays is “help wanted.”
On Tuesday, the retailer announced plans to hire for 3,700 positions companywide by the end of year. At a time when many retailers are hiring for temporary seasonal positions, CarMax said is looking for candidates seeking to “build careers.”
CarMax has more than 27,000 associates nationwide and is hiring for a variety of positions among its customer experience centers, digital innovation centers, corporate locations, and more than 220 stores nationwide.
Positions in high demand include the following:
— More than 1,400 auto technicians and service operations associates (including detailers, painters and more) to support the company’s continued growth by helping increase production of vehicles.
CarMax said these associates will primarily work on reconditioning vehicles and preparing them for sale.
The company said auto technicians can earn $19 to $53 per hour as it varies by location and experience.
And select locations offer sign-on bonuses of up to $7,500 for some positions.
— More than 700 customer service consultants, assistants and managers: Work directly with customers online and over the phone to provide support during their vehicle-buying journey.
Customer service consultants can earn $18 to $20 per hour plus a monthly bonus.
CarMax said select locations offer sign-on bonuses of up to $2,000 for some positions and an additional $1,500 bonus for bilingual hires.
Positions are available in Atlanta, Dallas, Denver, Kansas City, Las Vegas, Phoenix, Raleigh, N.C., and Richmond, Va., with opportunities for some positions to work from home.
— More than 900 store sales and business office associates.
Sales consultants work directly with customers to answer questions and help them find the best vehicle option to fit their needs.
Business office associates guide customers through the administrative process associated with vehicle sales and support the functions of all store departments.
— More than 150 positions in digital technology, product and data science
With digital innovation at the core of CarMax’s customer experience, the company said these roles advance technology solutions through machine learning, data science and software development to make the vehicle-buying process easier.
Positions include software engineers, architects, technology managers, technology analysts and more. They include both hybrid and remote positions with offices based out of CarMax’s Dallas Technology Innovation Center or corporate headquarters in Richmond, Va.
“The foundation of our company’s success is our exceptional associates, and we’re looking for candidates who will help us deliver the most customer-centric experience in the industry,” said Diane Cafritz, chief human resources officer and senior vice president at CarMax.
“CarMax has a people-first culture and we are steadfast in investing in our associates and providing training opportunities to support their growth and help them build great careers,” Cafritz continued.
Applicants can apply at careers.carmax.com.
CDK Global chief operating officer Joe Tautges joins the Auto Remarketing Podcast for a conversation about the company's inaugural CDK Connect event, how its recent purchases of Roadster and Salty complement each other, the auto insurtech space and much more.
CDK announced late last month that it signed a deal to purchase insurtech company Salty Dot, Inc., which provides car buyers a mobile solution to acquire car insurance without having to exit the shopping process.
This is the third acquisition CDK has announced in 2021.
In June, the company announced it had acquired digital vehicle sales platform Roadster.
In February, CDK said it completed the acquisition of Austin, Texas-based Square Root. The acquisition was said to be an accelerator for Neuron, which CDK says can empower dealers and OEMs to sell and service more vehicles by helping them create more personalized and differentiated customer experiences.
To listen to the episode, 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.
And now your dealership M&A coverage continues with a Texas two-step.
The Dallas-Fort Worth area, to be specific.
First up, Houston-based Group 1 Automotive announced Monday it has purchased two dealerships in the DFW market: Classic Chrysler Dodge Jeep Ram of Denton and Classic Mazda of Denton.
The retailer anticipates these dealerships will generate annualized revenues of approximately $150 million.
Group 1 currently has 10 stores representing 10 brands within the DFW area.
“We are excited to expand our presence in the fast-growing Dallas-Fort Worth metro market with these strong brands,” said Daryl Kenningham, who is Group 1’s president of U.S. and Brazilian operations, in a news release.
So far this year, Group 1 has competed acquired revenues of $570 million. Group 1 now has 119 dealerships in the U.S., thanks to this purchase.
The retailer anticipates its pending purchase of Prime Automotive Group will close late next month, which would put its acquired revenues to at least $2.4 billion. The Prime purchase would bump its U.S. dealer count to 149 and its total dealership count to 220.
Elsewhere on the M&A front, The Presidio Group said Tuesday it advised Dallas-based Sewell Automotive Companies on it purchase of Classic BMW, a transaction that included both a BMW and MINI franchise in Plano, Texas.
“Since the opening of our first BMW store in Grapevine, Texas in 2017, we have been honored to be a BMW dealer,” said Carl Sewell III, who is a president of Sewell Automotive Companies, said in a news release. “With the help of Brodie Cobb, George Karolis, and their incredible team at The Presidio Group, we are thrilled to add Classic BMW, one of the finest BMW dealerships in the country, to our group. We are also grateful to Eric Maas and the Maas family for this opportunity.”
Jacquelin Sewell, also a president of the group, added: ““Our family has focused our expansion on the highest quality businesses, and Classic BMW is at the top of that list. We welcome Classic BMW and MINI to the Sewell family and look forward to continuing the dealership’s 50-year legacy of outstanding service to the Plano community and the greater Dallas-Fort Worth area.”
Lee Maas founded Classic BMW in 1971.What started as a 3,000-square-foot facility eventually grew to a 160,000-square-foot facility, which Presidio said is the largest BMW store in the country based on square footage.
Eric Maas is the president of Classic BMW and director of racing operations at Fast Track Racing LLC. In Tuesday’s release, he said: “This dealership is a testament to my family’s passion for cars and customers. My family wouldn’t consider selling unless we were assured that our legacy of caring for our customers and employees would be continued at the same high standard.
“The Presidio Group understood that when they approached me about selling to the Sewell family, who literally wrote the book on customer service. We are certain that the Sewell Family will carry on our tradition of treating each customer in the showroom and service drive as if they are part of our own family.”
Added Presidio founder and chief executive officer Brodie Cobb, “Presidio was privileged to work with the Sewell family in helping them strategically grow their portfolio of high-performing luxury dealership franchises in Texas. Rarely in the M&A world do we find parties to a transaction that align philosophically more than the Sewell and Maas families. We were privileged to work so closely with both on this historic Dallas transaction.”
Private equity firm Brightstar Capital Partners said Tuesday it has completed its acquisition of XLerate Group, a deal initially announced Sept. 2.
Brightstar is now the majority owner of the auto auction and remarketing facilitation company.
“The XLerate team’s industry knowledge and operational expertise impressed us as we spent time at their auction sites around the country,” Brightstar founder and chief executive officer Andrew Weinberg said in a news release.
“This acquisition represents a phenomenal opportunity for XLerate’s customers and our investors alike, as we pool together our collective knowledge and resources to add value and grow this business,” he said.
XLerate CEO Cam Hitchcock added: “Especially with Brightstar’s support, we see enormous potential for this business and the sector as a whole.
“Our aim will be to solidify XLerate's leading market positions, and further scale in this industry through strategic investments in technology and other avenues for growth.”
Growth has certainly been the name of the game for XLerate as of late.
The company made three acquisitions in a span of just over two months.
On Sept. 17, XLerate announced it had purchased Clark County Auto Auction, which became the 15th auction brand in the XLerate family and the first in the group’s home state of Indiana.
The company announced Sept. 9 that it had purchased Greater Shreveport-Bossier Auto Auction, expanding its reach into Louisiana.
XLerate announce0d July 12 that it had purchased Liquid Motors, a move that can help bulk up the group’s digital sales.
Going back to Tuesday’s news, Brightstar partner Gary Hokkanen said: “XLerate provides liquidity to the dynamic used car industry across a number of geographic regions.
“Executing on our ‘Us & Us’ model of investing, we are excited to roll up our sleeves and work with XLerate's team as the company continues to offer innovative services to dealers and institutional customers.”
