Online Auto Retailer Vroom to Acquire United Auto Credit Corporation | Business
NEW YORK – (BUSINESS WIRE) – October 12, 2021–
Vroom (NASDAQ: VRM), an innovative e-commerce platform that provides a better way to buy and sell used vehicles, today announced that it has entered into a definitive agreement to acquire United Auto Credit Corporation (UACC), a Recognized leader in auto finance with 25 years of auto loan experience, for $ 300 million in cash, subject to adjustment for UACC closing book value.
This transformational acquisition accelerates Vroom’s strategic goal of establishing captive finance capabilities to support sales growth, improve unit economics and create long-term value for Vroom shareholders. With the integration of UACC’s non-senior lending capabilities, even more consumers will have the ability to transact seamlessly on Vroom’s platform as they look to purchase their next vehicle without ever leaving. their home.
UACC will join Vroom’s existing lineup of world-class lenders available through its e-commerce platform as the two teams work to integrate UACC’s services and grow Vroom’s captive finance operation. UACC will also remain committed to maintaining and expanding its impressive network of more than 7,300 dealer customers. Jim Vagim, President and CEO of UACC, and Ravi Gandhi, CEO and CFO of UACC, will remain in post after the acquisition and will play a key role in the integration and execution of the financial strategy. captive of Vroom.
“Competitive financing is a fundamental part of Vroom’s value proposition and the addition of exclusive lending capabilities unleashes significant value for our business and our customers,” said Paul Hennessy, CEO of Vroom. “We have been impressed by the depth of expertise of the UACC team, as well as their commitment to their clients, and we are delighted to have them with us as we advance our loan offering and continue our asset-driven approach to growing our business. The transaction represents a significant strategic opportunity, with significant potential to improve overall gross margin and improve customer satisfaction. ”
“We have always strived to provide as many consumers as possible the opportunity to purchase a vehicle through our in-depth lending capabilities and market expertise,” said Jim Vagim, President and CEO of UACC. “We are delighted to continue this mission by being part of the Vroom team and working together to make transactions easier for even more consumers. ”
Following the acquisition, UACC will become an indirect wholly owned subsidiary of Vroom and will continue to operate under the name of UACC. Vroom will fund the purchase price in cash. After closing, the acquisition is expected to be immediately accretive to Vroom’s earnings. The transaction is expected to close either at the end of Q4 2021 or early Q1 2022, subject to receipt of the required regulatory approvals and satisfaction of customary closing conditions.
Wells Fargo Securities, LLC is acting as exclusive financial advisor and Simpson, Thacher & Bartlett LLP as legal counsel to Vroom. Raymond James & Associates, Inc. serves as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP serves as legal advisor to UACC.
Conference Call and Webcast Information
Vroom management will discuss the transaction on a conference call and audio webcast on Tuesday, October 12, 2021 at 8:30 a.m. ET. The conference call can be accessed by telephone by dialing 1-833-519-1297 (or 914-800-3868 for international access) and entering conference ID 2091586. A live audio webcast will also be available at the conference call center. ‘address ir.vroom.com. An archived webcast of the conference call will be available on the website within 48 hours of its completion.
About Vroom, Inc .:
Vroom is an innovative end-to-end e-commerce platform designed to provide a better way to buy and sell used vehicles. Scalable, data-driven company technology brings all phases of the vehicle buying and selling process to consumers wherever they are and offers a wide selection of vehicles, transparent pricing, competitive financing, as well as home pickup and delivery. Vroom has offices in New York, Houston and Detroit and also operates the Texas Direct Auto brand. For more information visit vroom.com.
About United Auto Credit Corporation:
UACC is a leading nationwide automotive lender with advanced technology serving the independent dealer market. UACC has made significant investments in the development of proprietary technology that has enabled it to adapt to an ever-changing market, evolve efficiently and generate operational leverage. UACC has a world-class management team committed to providing excellent service and creating value for its employees, customers and dealer partners. UACC is based in Newport Beach, Calif., Fort. Worth, Texas and Buffalo, NY. For more information visit unitedautocredit.net.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to historical facts should be considered as forward-looking statements, including, without limitation, statements regarding our expectations regarding future operating results. These statements are based on management’s current assumptions and are not promises or guarantees, but involve known and unknown risks, uncertainties and other significant factors that may cause our actual results, performance or achievements to be made. be materially different from future results, performance or achievements expressed or implied by forward-looking statements. For factors that could cause actual results to differ materially from the forward-looking statements in this press release, please see the risks and uncertainties identified under “Risk Factors” in our Form 10-K for the year ended. December 31, 2020 and our quarterly report on Form 10-Q for the quarter ended June 30, 2021, available on our Investor Relations website at ir.vroom.com and on the SEC website at sec.gov. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We do not undertake to update any forward-looking statements to reflect future events or circumstances.
View source version on businesswire.com:https://www.businesswire.com/news/home/20211012005371/en/
CONTACT: Media contact:
Moxie Communication Group
(562) 294-6261 Investor Relations:
KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: AUTOMOTIVE TECHNOLOGY GENERAL AUTOMOTIVE OTHER DETAIL SPECIALTY OTHER AUTOMOTIVE SOFTWARE DETAIL ONLINE DETAIL
Copyright Business Wire 2021.
PUB: 12/10/2021 06:00 / DISC: 12/10/2021 06:02
Copyright Business Wire 2021.