Dealership website provider DealerOn said Monday it received an investment from private equity firm NexPhase Capital LP, a partnership the dealer vendor said will help it achieve scale.
Terms of the deal were not disclosed, though DealerOn said it will continue to be led by company founders and brothers Ali and Amir Amirrezvani and will remain based in Rockville, Md.
DealerOn said the deal with NexPhase Capital will enable more innovation and allow the company to double the size of its development teams. The company didn't disclose the current size of those teams.
"As we continue to scale the business and define our leadership position within the automotive retail industry, we are thrilled to partner with NexPhase and welcome them to the DealerOn family," DealerOn CEO Ali Amirrezvani said in a statement. "NexPhase brings deep sector knowledge, operational expertise and significant resources that will help drive DealerOn's success for years to come."
DealerOn, founded in 2004, counts more than 3,500 dealership clients and 350 employees. It holds 26 website provider certifications from automakers. In 2019, it was named one of four possible dealership website providers for General Motors, which is broadening its dealership website network beyond a single vendor, CDK Global, starting this year. DealerOn also specializes in digital marketing.
NexPhase, based in New York, counts software and services among its investment sectors, with a specific emphasis on business-to-business software.
"Now more than ever, dealers are looking for a fast, fully transparent and easy-to-manage digital marketing platform," Bob Gartland, a NexPhase Capital principal, said in the company's statement. "This investment is a testament to the tremendous efforts and hard work of the DealerOn team to make car buying in the digital age better than ever, and it marks an important next step in the company's ability to scale and deliver on the high growth potential of its platform."
Horatio Partners assisted DealerOn as its financial adviser in the deal, while Foley & Lardner LLP provided legal counsel. NexPhase had legal counsel from Lowenstein Sandler LLP.