The dealership technology company based in Chicago last week said it signed an agreement to purchase 100 percent of the assets of Accu-Trade, a provider of vehicle appraisal and valuation data and logistics technology, for $65 million in cash. Accu-Trade's assets include Galves Market Data and Made Logistics. Cars.com said it expects the deal to close in about 30 days and that it will make an earn-out payment to the sellers of an additional $63 million contingent on the acquired business hitting certain performance targets.
Cars.com said the addition of Accu-Trade — founded in 2015 by Robert Hollenshead, who will be an adviser to Cars.com and Accu-Trade — will give its dealership customers the ability to buy and sell vehicles in both dealer-to-dealer and consumer-to-dealer transactions. Accu-Trade's technology, including an instant guaranteed offer tool and VIN-based vehicle valuation and appraisal information, will be integrated across Cars.com's online vehicle listings marketplace and dealership websites.
Cars.com CEO Alex Vetter called sourcing inventory "the No. 1 pain point for dealers today" in an interview last week.