CHICAGO, Nov. 2, 2023
/PRNewswire/ -- Cars.com Inc. (NYSE: CARS) (d/b/a "Cars Commerce"
or the "Company"), an audience-driven technology company empowering
the automotive industry, today announced the acquisition of D2C
Media Inc. ("D2C"), a leading automotive technology and digital
solutions provider in Canada. The
Company paid CAD $105 million in cash
(USD $76 million) at closing, which
was funded by a combination of cash on hand and borrowings under
the Company's existing revolving credit facility. There is also the
potential for additional performance-based consideration of up to
CAD $35 million (approximately USD
$25 million as of the closing date)
based on achievement of certain financial thresholds. The
transaction closed on November 1,
2023.
Transaction Highlights
- Further expands the Company's geographic footprint; D2C serves
1,000 dealer customers in Canada
today and will establish Cars Commerce as a leading automotive
digital solutions provider in the country
- Supports acceleration of Cars Commerce's profitable growth
trajectory and is expected to be immediately accretive
- Expected to create substantial cross-selling opportunities
through rapid expansion of Canadian dealer base, expanding the
potential for long-term Monthly Average Revenue Per Dealer ("ARPD")
growth
D2C Media serves approximately 1,000 dealer customers throughout
Canada with website, media
services, and other technology solutions that help dealers increase
sales velocity and measure impact. The company generates revenue
primarily through subscription fees of its products and services.
Historically, OEM program endorsement expansion has enabled
incremental customer additions and profitable revenue growth for
the company.
"The acquisition of D2C Media presents an exciting opportunity
to expand Cars Commerce further across North America. With D2C Media's deep local
relationships and established infrastructure, we will be able to
tap into a new market with dozens of OEMs and thousands of
retailers to fuel accelerated growth," said Alex Vetter, chief executive officer of Cars
Commerce. "I'm thrilled to welcome the D2C Media team, and,
together, we look forward to creating tremendous value for Canadian
retailers through our ongoing commitment to enabling local
automotive retail and simplifying everything about buying and
selling cars."
As a result of the acquisition, Cars Commerce will materially
expand from its existing base of approximately 250 Dealer Inspire
Canadian website customers. In addition, with this acquisition Cars
Commerce will now be endorsed by approximately 60% of OEMs
operating in Canada, with
significant runway for additional growth. The combination of D2C's
local experience and knowledge with the Cars Commerce product
portfolio will enable increased distribution for the Dealer Inspire
and Accu-Trade brands in Canada;
and deeper relationships with OEMs, many of whom seek complete
coverage of North America.
Based in Montreal, D2C Media
was founded in 2003 and has approximately 95 employees distributed
throughout Canada. More information on the transaction will be
provided on Cars Commerce's third quarter earnings call.
About Cars Commerce
Cars Commerce is an
audience-driven technology company empowering automotive that
simplifies everything about buying and selling cars. The Cars
Commerce platform includes the flagship automotive marketplace and
dealer reputation site Cars.com, innovative digital marketing
technology and services from Dealer Inspire, industry-leading
trade-in and appraisal technology from Accu-Trade, an exclusive
in-market media network, and powerful and predictive AI
technologies that enable more efficient and profitable retail
operations. Cars Commerce is the essential partner to stay one step
ahead in automotive. Learn more at www.carscommerce.inc.
About D2C Media Inc.
Founded in 2003, D2C Media
Inc. provides automotive dealerships with technology and digital
solutions, including websites, media services, customer
relationship management software, outsourced virtual business
development centers, and reputation management services. D2C Media
is consistently recognized as one of Canada's fastest growing companies, and is
committed to pushing the limits of what's currently possible with
innovative solutions that drive online conversions and help
automotive dealers measure the success of their investments. For
more information, please
visit www.D2CMedia.ca
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the federal securities laws. All statements other
than statements of historical facts are forward-looking statements.
Forward-looking statements include information concerning goals,
plans, expectations, projections regarding the expected benefits of
the transaction, management's plans, projections and objectives for
the transaction, future operations, scale and performance,
integration plans and expected synergies therefrom, and our
financial position, results of operations, market position, capital
allocation strategy, initiatives, business strategy and
expectations of our management, and other matters and involve known
and unknown risks that are difficult to predict. As a result, our
actual financial results, performance, achievements, strategic
actions or prospects may differ materially from those expressed or
implied by these forward-looking statements. These statements often
include words such as "believe," "expect," "project," "anticipate,"
"outlook," "intend," "strategy," "plan," "estimate," "target,"
"seek," "will," "may," "would," "should," "could," "forecasts,"
"mission," "strive," "more," "goal" or similar expressions. All
forward-looking statements contained in this press release are
qualified by these cautionary statements. Forward-looking
statements are based on our current expectations, beliefs,
strategies, estimates, projections and assumptions, experience in
the industry as well as our perceptions of historical trends,
current conditions, expected future developments, global supply
chain shortages, fluctuating fuel prices, rising interest rates,
inflation and and other factors we think are appropriate. Such
forward-looking statements are based on estimates and assumptions
that, while considered reasonable by the Company and its management
based on their knowledge and understanding of the business and
industry, are inherently uncertain. While the Company and its
management make such statements in good faith and believe such
judgments are reasonable, you should understand that these
statements are not guarantees of future strategic action,
performance or results.Our actual results, performance,
achievements, strategic actions, or prospects could differ
materially from those expressed or implied by these forward-looking
statements. Given these uncertainties, you should not rely on
forward-looking statements in making investment decisions. When we
make comparisons of results between current and prior periods, we
do not intend to express any future trends, or indications of
future performance, unless expressed as such, and you should view
such comparisons as historical data. Whether or not any such
forward-looking statement is in fact achieved will depend on future
events, some of which are beyond our control.
Forward-looking statements are subject to a number of risks,
uncertainties and other important factors, many of which are beyond
our control, that could cause our actual results and strategic
actions to differ materially from those expressed in the
forward-looking statements contained in this press release. For a
detailed discussion of many of these and other risks and
uncertainties, see "Part I, Item 1A., Risk Factors" and "Part II,
Item 7., Management's Discussion and Analysis of Financial
Condition and Results of Operations" in our Annual Report on Form
10-K for the year ended December 31,
2022, as filed with the Securities and Exchange Commission
("SEC") on February 23, 2023 and our
other filings filed with the SEC and available on our website at
investor.cars.com or via EDGAR at www.sec.gov. You should evaluate
all forward-looking statements made in this press release in the
context of these risks and uncertainties. The forward-looking
statements contained in this press release are based only on
information currently available to us and speak only as of the date
of this press release. We undertake no obligation, other than as
may be required by law, to update or revise any forward-looking or
cautionary statements to reflect changes in assumptions, the
occurrence of events, unanticipated or otherwise, or changes in
future operating results over time or otherwise. The
forward-looking statements in this press release are intended to be
subject to the safe harbor protection provided by the federal
securities laws.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/carscom-inc-acquires-d2c-media-inc-expanding-cars-commerce-platform-into-canada-in-accretive-transaction-301975088.html
SOURCE Cars.com Inc.