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Tuesday, 12 October 2021 16:47

Online Automotive Retailer Vroom to Acquire United Auto Credit Corporation

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Vroom, an innovative ecommerce platform that offers a better way to buy and sell used vehicles, on Oct. 12 announced it has entered into a definitive agreement to acquire United Auto Credit Corporation (UACC), a proven leader in automotive finance with 25 years of automotive lending experience, for $300 million in cash, subject to adjustment based upon UACC’s closing book value.

This transformational acquisition accelerates Vroom’s strategic objective to establish captive financing capabilities to support sales growth, improve unit economics and create long-term value for Vroom’s shareholders.

 

With the integration of UACC’s non-prime lending capabilities, even more consumers will have the opportunity to seamlessly transact on Vroom’s platform as they look to purchase their next vehicle without ever leaving home.
 
UACC will join Vroom’s existing lineup of world-class lenders available through its ecommerce platform while both teams work to integrate UACC’s services and develop Vroom’s captive financing operation. UACC also will remain committed to maintaining and expanding its impressive network of more than 7,300 dealership customers.

 

Jim Vagim, president and CEO of UACC, and Ravi Gandhi, managing director and CFO of UACC, will remain in their positions following the acquisition and play a key role in the integration and execution of Vroom's captive finance strategy.
 
“Competitive financing is a fundamental component of Vroom’s value proposition and adding proprietary lending capabilities unlocks significant value for our business and our customers,” said Paul Hennessy, CEO at Vroom. “We were impressed with the UACC team’s depth of expertise, as well as their commitment to their customers, and are thrilled to have them as part of the team as we advance our lending offering and continue our asset-light approach to scaling our business. The transaction represents...


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