Cars.com Inc. (CARS), a prominent player in automotive digital marketing, announced on Friday its acquisition of DealerClub for an initial sum of $25 million in cash at the time of closing.
This transaction, finalized on January 23, includes the potential for an additional $88 million payout contingent upon the achievement of specific financial milestones, as noted by the company.
Cars.com has indicated that the deal is expected to have minimal impact on its 2025 revenue. Additionally, Adjusted EBITDA is not anticipated to increase next year due to the strategic investments planned for scaling DealerClub's operations.
DealerClub operates as a digital wholesale auction platform and is poised to make significant strides in the wholesale market.
In pre-market trading on the New York Stock Exchange, Cars.com shares have risen by 0.34%, currently standing at $17.80.
