CarMax, Inc., has recently signed a definitive agreement to acquire Edmunds.
CarMax is America's largest used-car retailer, and Edmunds.com is an online resource for automotive information. Both industry experts will gain more momentum in what they specialize in, offering valuable and exceptional service to car buyers.
"We are excited to bring the iconic Edmunds brand, history of innovation and exceptional technology and creative talent into the CarMax family,” Bill Nash, CarMax's president and CEO, told Mega Dealer News. “Our partnership to date has proven to be an outstanding combination, as we've developed innovative products and advanced our shared commitment to delivering the highest-quality online experience. We look forward to supporting and investing in Edmunds' continued growth and are excited about the many opportunities ahead for both CarMax and Edmunds."
It was last year when CarMax invested $50 million to secure a minority stake in Edmunds, according to the Edmunds website. The move triggered both companies to jointly craft strategic initiatives, one of which is an online instant offer for used-auto merchants.
Inclusive of CarMax’s initial investment, the agreement signifies an acquisition value of $404 million and CarMax’s better traction in the used-car market, reports the AIM Group. The acquisition is projected to happen through a cash-and-stock transaction.
While CarMax’s consumer already had online tools to shop for vehicles, COVID-19 activated the company’s tech team to roll out its next-generation omni-channel platform in advance of its scheduled launch, according to Wards Auto.
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