Cars.com Inc. Acquires DealerClub, Expanding Trade & Appraisal Platform Capabilities With Reputation-Based Dealer-to-Dealer Digital Wholesale Auction
Cars.com (NYSE: CARS) has acquired DealerClub, a reputation-based automotive digital wholesale auction platform, for approximately $25 million in cash with potential additional performance-based payments up to $88 million. The transaction, closed on January 23, 2025, advances Cars.com's Trade & Appraisal strategy and enables entry into the wholesale used car market valued at over $10B.
DealerClub, launched in 2024 by ACV Auctions founder Joe Neiman, serves over 650 dealer customers through a reputation-based system that promotes trust and minimizes disputes. The platform generates revenue primarily through transaction fees and will be integrated into the Cars Commerce platform to add dealer-to-dealer wholesale capabilities.
The acquisition is expected to have minimal revenue impact in 2025 and is not anticipated to be accretive to Adjusted EBITDA during the initial investment phase to scale DealerClub.
Cars.com (NYSE: CARS) ha acquisito DealerClub, una piattaforma di aste digitali all'ingrosso automobilistiche basata sulla reputazione, per circa 25 milioni di dollari in contanti, con potenziali pagamenti aggiuntivi legati alle prestazioni fino a 88 milioni di dollari. La transazione, conclusa il 23 gennaio 2025, promuove la strategia di Commercio e Valutazione di Cars.com e consente l'ingresso nel mercato all'ingrosso delle auto usate, valutato oltre 10 miliardi di dollari.
DealerClub, lanciata nel 2024 dal fondatore di ACV Auctions Joe Neiman, serve oltre 650 clienti concessionari tramite un sistema basato sulla reputazione che promuove la fiducia e minimizza le controversie. La piattaforma genera entrate principalmente attraverso commissioni sulle transazioni e sarà integrata nella piattaforma Cars Commerce per aggiungere capacità all'ingrosso tra concessionari.
Si prevede che l'acquisizione avrà un impatto minimo sulle entrate nel 2025 e non si anticipa che contribuisca in modo positivo all'EBITDA rettificato durante la fase iniziale di investimento per scalare DealerClub.
Cars.com (NYSE: CARS) ha adquirido DealerClub, una plataforma de subastas digitales mayoristas de automóviles basada en la reputación, por aproximadamente 25 millones de dólares en efectivo, con pagos adicionales potenciales basados en el rendimiento de hasta 88 millones de dólares. La transacción, cerrada el 23 de enero de 2025, avanza la estrategia de Comercio y Tasación de Cars.com y permite la entrada en el mercado mayorista de coches usados, valorado en más de 10 mil millones de dólares.
DealerClub, lanzada en 2024 por el fundador de ACV Auctions, Joe Neiman, atiende a más de 650 clientes concesionarios a través de un sistema basado en la reputación que promueve la confianza y minimiza las disputas. La plataforma genera ingresos principalmente a través de comisiones por transacción y se integrará en la plataforma Cars Commerce para agregar capacidades mayoristas de concesionario a concesionario.
Se espera que la adquisición tenga un impacto mínimo en los ingresos en 2025 y no se anticipa que sea beneficiosa para el EBITDA ajustado durante la fase inicial de inversión para escalar DealerClub.
Cars.com (NYSE: CARS)는 약 2,500만 달러의 현금으로 DealerClub, 평판 기반의 자동차 디지털 도매 경매 플랫폼을 인수했으며, 최대 8,800만 달러의 성과 기반 추가 지급금이 포함될 수 있습니다. 이 거래는 2025년 1월 23일에 종료되었으며, Cars.com의 거래 및 평가 전략을 진전시키고 100억 달러가 넘는 중고차 도매 시장에 진입을 가능하게 합니다.
DealerClub은 ACV 경매의 창립자인 Joe Neiman에 의해 2024년에 출시되었으며, 신뢰를 촉진하고 분쟁을 최소화하는 평판 기반 시스템을 통해 650개 이상의 딜러 고객에게 서비스를 제공합니다. 이 플랫폼은 주로 거래 수수료를 통해 수익을 창출하며, Cars Commerce 플랫폼에 통합되어 딜러 간의 도매 기능을 추가할 예정입니다.
이번 인수는 2025년 수익에 미미한 영향을 미칠 것으로 예상되며, DealerClub의 규모를 확대하는 초기 투자 단계에서 조정된 EBITDA에 긍정적으로 기여할 것으로 예상되지 않습니다.
Cars.com (NYSE: CARS) a acquis DealerClub, une plateforme d'enchères numériques en gros de véhicules basée sur la réputation, pour environ 25 millions de dollars en espèces, avec des paiements supplémentaires potentiels basés sur la performance pouvant atteindre 88 millions de dollars. La transaction, clôturée le 23 janvier 2025, fait avancer la stratégie de Commerce et d'Évaluation de Cars.com et permet l'entrée sur le marché de la vente en gros de voitures d'occasion, évalué à plus de 10 milliards de dollars.
DealerClub, lancé en 2024 par Joe Neiman, le fondateur d'ACV Auctions, sert plus de 650 clients concessionnaires grâce à un système basé sur la réputation qui favorise la confiance et minimise les litiges. La plateforme génère des revenus principalement par le biais de frais de transaction et sera intégrée à la plateforme Cars Commerce pour ajouter des capacités de vente en gros entre concessionnaires.
On s'attend à ce que l'acquisition ait un impact minimal sur les revenus en 2025 et qu'elle ne soit pas censée être bénéfique pour l'EBITDA ajusté pendant la phase initiale d'investissement pour développer DealerClub.
Cars.com (NYSE: CARS) hat DealerClub, eine auf Reputation basierende digitale Auktionsplattform für den Automobil-Wholesale, für etwa 25 Millionen US-Dollar in bar erworben, mit potenziellen zusätzlichen leistungsbasierten Zahlungen von bis zu 88 Millionen US-Dollar. Die Transaktion, die am 23. Januar 2025 abgeschlossen wurde, fördert die Handels- und Bewertungsstrategie von Cars.com und ermöglicht den Einstieg in den über 10 Milliarden US-Dollar wertvollen Markt für gebrauchte Autos im Großhandel.
DealerClub, 2024 vom Gründer von ACV Auctions, Joe Neiman, gegründet, bedient über 650 Händlerkunden durch ein auf Reputation basierendes System, das Vertrauen fördert und Streitigkeiten minimiert. Die Plattform generiert Einnahmen hauptsächlich durch Transaktionsgebühren und wird in die Cars Commerce-Plattform integriert, um Wettbewerbsfähigkeiten im Großhandel zwischen Händlern hinzuzufügen.
Der Erwerb wird voraussichtlich minimale Auswirkungen auf die Einnahmen im Jahr 2025 haben und wird nicht als additiv für das bereinigte EBITDA während der Anfangsinvestitionsphase zur Skalierung von DealerClub erwartet.
- Entry into $10B+ wholesale used car market
- Addition of transactional revenue stream to complement subscription business
- Established customer base of 650+ dealers
- Strategic expansion of Trade & Appraisal capabilities
- Potential for cross-selling opportunities and AccuTrade adoption acceleration
- Immaterial revenue contribution expected in 2025
- Not expected to be EBITDA accretive in 2025 due to scaling investments
- Additional $88M potential earnout payment could impact cash position
Insights
This strategic acquisition positions Cars Commerce to tap into the
The involvement of Joe Neiman, ACV Auctions' founder, is particularly significant. Under his leadership, ACV grew to a multi-billion dollar valuation, suggesting strong execution capability for DealerClub. The platform's current base of 650 dealers provides a solid foundation for scaling, especially when integrated with Cars.com's extensive dealer network.
The transaction's structure reveals three key strategic elements:
- Integration with AccuTrade creates a full-lifecycle platform, potentially increasing dealer stickiness
- Transition from pure subscription to hybrid revenue model diversifies income streams
- Reputation-based system addresses a major pain point in wholesale auctions - trust and dispute resolution
While near-term financial impact is minimal and temporary EBITDA dilution is expected, the long-term potential for cross-selling and network effects could drive significant value. The wholesale market entry also positions Cars Commerce as a more comprehensive automotive technology platform, potentially commanding higher valuation multiples.
This acquisition marks a pivotal shift in the digital transformation of wholesale auto auctions. The reputation-based system introduces a important trust element that has been notably absent in digital wholesale platforms, potentially reducing transaction friction and operational costs for dealers.
Three key market dynamics make this acquisition particularly timely:
- Increasing dealer adoption of digital wholesale channels accelerated by recent supply chain disruptions
- Growing demand for efficient inventory management solutions amid market volatility
- Rising importance of trusted networks in digital transactions
The integration with Cars.com's existing platform creates powerful network effects. As more dealers join the platform, the value of the reputation system increases, creating a potential moat against competitors. The focus on transparency and efficiency aligns with broader industry trends toward digitization, suggesting strong growth potential as the platform scales.
Transaction Highlights:
- Advances the Company's Trade & Appraisal strategy and enables entrance into a large wholesale used car market worth over
$10B - Adds a transactional revenue stream to the Company's powerful subscription business
- Expected to create long-term cross-selling opportunities and acceleration of AccuTrade adoption with an attractive full lifecycle platform that seamlessly integrates retail and wholesale operations
- Brings the transparency of reviews to the wholesale market for the first time and builds on Company's legacy as the largest provider of consumer and dealership reviews in auto
DealerClub is an emerging, dealer-to-dealer, digital wholesale auction platform that facilitates transparent and efficient transactions between automotive dealers. The company's auction model is built around a reputation-based system – the first in the industry – which promotes trust in transactions, ultimately minimizing arbitration disputes and title issues. DealerClub's commitment to innovation and dealer support aligns with broader trends in the automotive industry towards digitization and optimized inventory management. Serving more than 650 dealer customers with a strong pipeline, the company generates revenue primarily through transaction fees.
"The acquisition of DealerClub is a critical step for Cars Commerce's strategic vision to expand into the wholesale market by catering to the large dealer segment looking to gain operating and financial efficiencies by leveraging technology to trade used vehicles within a trusted network," said Alex Vetter, CEO of Cars Commerce. "By integrating DealerClub's technology onto the Cars Commerce platform, we add transactional dealer-to-dealer wholesale capabilities focused on transparency and digital efficiency, and significantly extend our influence in the wholesale market by giving power and profits back to the retail community."
DealerClub launched to customers in 2024 by Joe Neiman, founder of ACV Auctions (ACVA), who brings proven expertise in scaling similar platforms to industry-leading positions. Cars Commerce expects the transaction to have an immaterial contribution to revenue in 2025. In addition, the transaction is not expected to be accretive to Adjusted EBITDA in 2025, as the Company makes investments to scale DealerClub. More information on the transaction will be provided on Cars Commerce's Fourth Quarter/Full Year 2024 earnings call.
ABOUT CARS COMMERCE
Cars Commerce is an audience-driven technology company empowering automotive that simplifies everything about buying and selling cars. The Cars Commerce platform includes the flagship automotive marketplace and dealer reputation site Cars.com, innovative digital marketing technology and services from Dealer Inspire, industry-leading trade-in and appraisal technology from AccuTrade, an exclusive in-market media network, and powerful and predictive AI technologies that enable more efficient and profitable retail operations. Cars Commerce is the essential partner to stay one step ahead in automotive. Learn more at www.carscommerce.inc.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of the federal securities laws. All statements other than statements of historical facts are forward-looking statements. Forward-looking statements include information concerning goals, plans, expectations, projections regarding the expected benefits of the transaction, management's plans, projections and objectives for the transaction, future operations, scale and performance, integration plans and expected synergies therefrom, and our financial position, results of operations, market position, capital allocation strategy, initiatives, business strategy and expectations of our management, and other matters and involve known and unknown risks that are difficult to predict. As a result, our actual financial results, performance, achievements, strategic actions or prospects may differ materially from those expressed or implied by these forward-looking statements. These statements often include words such as "believe," "expect," "project," "anticipate," "outlook," "intend," "strategy," "plan," "estimate," "target," "seek," "will," "may," "would," "should," "could," "forecasts," "mission," "strive," "more," "goal" or similar expressions. All forward-looking statements contained in this press release are qualified by these cautionary statements. Forward-looking statements are based on our current expectations, beliefs, strategies, estimates, projections and assumptions, experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments, global supply chain shortages, fluctuating fuel prices, rising interest rates, inflation and and other factors we think are appropriate. Such forward-looking statements are based on estimates and assumptions that, while considered reasonable by the Company and its management based on their knowledge and understanding of the business and industry, are inherently uncertain. While the Company and its management make such statements in good faith and believe such judgments are reasonable, you should understand that these statements are not guarantees of future strategic action, performance or results. Our actual results, performance, achievements, strategic actions, or prospects could differ materially from those expressed or implied by these forward-looking statements. Given these uncertainties, you should not rely on forward-looking statements in making investment decisions. When we make comparisons of results between current and prior periods, we do not intend to express any future trends, or indications of future performance, unless expressed as such, and you should view such comparisons as historical data. Whether or not any such forward-looking statement is in fact achieved will depend on future events, some of which are beyond our control.
Forward-looking statements are subject to a number of risks, uncertainties and other important factors, many of which are beyond our control, that could cause our actual results and strategic actions to differ materially from those expressed in the forward-looking statements contained in this press release. For a detailed discussion of many of these and other risks and uncertainties, see "Part I, Item 1A., Risk Factors" and "Part II, Item 7., Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission ("SEC") on February 22, 2024 and our other filings filed with the SEC and available on our website at investor.cars.com or via EDGAR at www.sec.gov. You should evaluate all forward-looking statements made in this press release in the context of these risks and uncertainties. The forward-looking statements contained in this press release are based only on information currently available to us and speak only as of the date of this press release. We undertake no obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise. The forward-looking statements in this press release are intended to be subject to the safe harbor protection provided by the federal securities laws.
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SOURCE Cars Commerce
FAQ
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