Online used-vehicle retailer Shift Technologies Inc. said Tuesday it plans to combine with CarLotz, a used-vehicle consignment company, in a stock-for-stock merger.
The companies cited "complementary geographies" as a reason for the merger. CarLotz aims to use Shift's proprietary inventory acquisition software and at-home delivery offering to help obtain "differentiated inventory" and expand the geographic footprint in which it operates. Shift, in its announcement of the deal, said it wanted to use CarLotz's mid-Atlantic retail locations "to scale its dealer marketplace on the East Coast."
The companies didn't announce a name for the combined entity but said it will trade under Shift Technologies' SFT ticker symbol. Shift Technologies and CarLotz, which have each had challenging years adjusting to changes in the used-vehicle market, said they expected the transaction to close in the fourth quarter, pending shareholder and regulatory approvals. Upon the closing, the combined company is expected to have a cash position of about $125 million, Shift's announcement said.