Carmax Acquires Edmunds

By Staff Writer April 05, 2021

CarMax Inc. announced it has signed a definitive agreement to acquire Edmunds, one of the most well-established and trusted online guides for automotive information and a recognized 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 is expected to be paid in a combination of cash and stock. In 2020, Edmunds generated unaudited revenue of approximately $140 million. The transaction is subject to customary closing conditions and is expected to close in June 2021.

With this acquisition, CarMax and Edmunds accelerate their respective capabilities to deliver an enhanced digital experience to their customers by leveraging Edmunds’ content and technology, CarMax’s national scale and infrastructure, and the combined talent of both companies. Following the closing of the transaction, Edmunds will continue to operate independently.

“We are excited to bring the iconic Edmunds brand, history of innovation, and exceptional technology and creative talent into the CarMax family,” said Bill Nash, CarMax’s President and Chief Executive Officer. “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.”

In January 2020, CarMax invested $50 million to acquire a minority stake in Edmunds. Following that investment, CarMax and Edmunds jointly developed a number of strategic initiatives, including a successful online instant offer for sellers of used autos.

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Last modified on Tuesday, 06 April 2021 14:17