CarMax’s Acquisition of Remaining Stake in Edmunds

Skadden, Arps, Slate, Meagher & Flom LLP advised CarMax, while Sullivan & Cromwell LLP advised Edmunds on the deal.

CarMax, Inc., the nation’s largest and most profitable retailer of used autos, has signed a definitive agreement to acquire Edmunds, an online guide for automotive information and an industry leader in digital car shopping innovations.

CarMax will acquire the remaining shares of Edmunds for a purchase price that implies an enterprise value of $404 million, inclusive of CarMax’s initial investment, which we expect to be paid in a combination of cash and stock. In 2020, Edmunds generated unaudited revenue of approximately $140 million. 

Goldman Sachs & Co. LLC served as exclusive financial to CarMax. Evercore served as financial advisor to Edmunds.

The Skadden team advising CarMax included M&A partners Katherine Ashley (Washington, D.C.; Picture), and associates Elisabeth Press (Washington, D.C.) and Christina Phan (Washington, D.C.); Tax partner Jessica Hough (Washington, D.C.) and associate Kate Mathieu (Washington, D.C.); Executive Compensation and Benefits counsel Kristin Davis (Palo Alto) and associate Allison Kroeker (Palo Alto); Intellectual Property and Technology partner Ken Kumayama (Palo Alto); Labor and Employment Law counsel Annie Villanueva (Palo Alto); and Antitrust/Competition counsel Steve Albertson (Washington, D.C.).

Involved fees earner: Steven Albertson – Skadden Arps Slate Meager & Flom; Katherine Ashley – Skadden Arps Slate Meager & Flom; Kristin Davis – Skadden Arps Slate Meager & Flom; Jessica Hough – Skadden Arps Slate Meager & Flom; Allison Kroeker – Skadden Arps Slate Meager & Flom; Ken Kumayama – Skadden Arps Slate Meager & Flom; Kate Mathieu – Skadden Arps Slate Meager & Flom; Christina Phan – Skadden Arps Slate Meager & Flom; Elisabeth Press – Skadden Arps Slate Meager & Flom; Annie Villanueva – Skadden Arps Slate Meager & Flom;

Law Firms: Skadden Arps Slate Meager & Flom;

Clients: CarMax Inc.;

Author: Martina Bellini