Cadwalader provided tax advice to CarOffer in the transaction.
CarGurus, Inc. (NASDAQ: CARG), a leading global online automotive marketplace, entered into a definitive agreement to acquire a 51% interest in Plano, TX-based CarOffer, at an enterprise valuation of $275 million, with the ability to buy the remaining equity interest over the next three years. Following the transaction, CarOffer will continue to operate independently under its current leadership. The transaction is expected to close in January 2021.
CarOffer is an automated instant vehicle trade platform that is disrupting the traditional wholesale auction model with technology that enables dealers to bid, transact, inspect and transport seamlessly. The acquisition will add wholesale capabilities to CarGurus’ portfolio of dealer offerings, creating a complete and efficient digital solution for dealers to sell and acquire vehicles at both retail and wholesale. The expansion to wholesale is a key component of CarGurus’ overall platform strategy, which also includes acceleration of a robust digital retail offering for dealers and consumers.
The Cadwalader team advising CarOffer included Corporate partner Daniel Raglan (Picture) and Tax partner Jason Schwartz and associate Matthew Seitz.
Law Firms: Cadwalader Wickersham & Taft;