Vehicle auction and remarketing company XLerate Group said Wednesday it has signed an agreement to acquire America’s Auto Auction, another major auction company.
Financial details of the transaction were not disclosed. Members of XLerate’s executive team, including CEO Cam Hitchcock, will step in to oversee the company.
"The independent vehicle auction sector is poised for significant growth, as consumer demand expands, and technology continues to enhance the remarketing process," Hitchcock said in a statement.
Hitchcock said the two companies will work to develop a platform that “further redefines the remarketing industry” and leverages physical and digital aspects of the auction process.
Brightstar Capital Partners, a private equity firm based in New York, locked down XLerate in a late September acquisition. Brightstar will act as controlling shareholder of the XLerate-America's Auto Auction combined company, according to a news release.
"Our investment in [America's Auto Auction], following our earlier acquisition of XLerate, clearly indicates our confidence in the vehicle auction market and its value-creation potential for Brightstar investors," Brightstar CEO Andrew Weinberg said in a statement.
It was not immediately clear whether the two auction companies will rebrand as a new company or maintain their own names. Automotive News has reached out to Brightstar for further comment.