CarGurus finalized its acquisition of CarOffer, purchasing the remaining minority equity interests for $75 million. Zach Hallowell, an expert in digital wholesale market leadership, has been appointed CEO of CarOffer.
“With this transaction complete, we believe we are well-positioned to accelerate our momentum in delivering solutions that streamline and enhance the dealer-to-dealer and consumer-to-dealer transaction experience,” Hallowell said.
CarGurus initially acquired a 51% interest in CarOffer in January 2021 and announced its intentions to expedite the purchase of the remaining stake on Nov. 7, 2023.
The acquisition is seen as a strategic move to capture growing product and data opportunities, aiming to develop innovative solutions that support CarGurus' ambition to create a transaction-enabled platform, assisting dealers and consumers through every stage of the automotive lifecycle.
“We believe that the headway made to bolster CarOffer operations and integrate the instant trade platform’s BuyingMatrix technology into our solutions will provide a solid foundation for the next chapter of our work together,” said Jason Trevisan, CEO of CarGurus.
Trevisan also pointed out the anticipated benefits of leveraging Hallowell's deep market experience to enhance the platform, aiding dealers in more efficiently acquiring and selling inventory and supporting consumers in selling their cars with greater ease.
Over the past year, CarOffer has implemented a series of operational improvements, enhancing tools that empower dealers to make more informed decisions amid fluctuating market conditions. These improvements include the addition of pre-purchase mechanical inspections and the introduction of a 24-Hour Approval feature, allowing dealers to review and approve purchases before transactions are processed. CarOffer has achieved a 47% reduction in arbitration rates year-over-year and a 30% improvement in the time it takes to obtain and process a title.
Post-acquisition, CarOffer will continue to operate as a standalone brand at its Addison, TX, location. Hallowell, succeeding Bruce Thompson, CarOffer's founder, will steer CarOffer's operations and strategy, as well as its ongoing integration with CarGurus.