CarGurus has entered into a definitive agreement to acquire the remaining minority equity interests in CarOffer for $75 million through an all-cash transaction. The deal is expected to close in December 2023 subject to customary closing conditions.

CarGurus acquired a 51% stake in CarOffer in 2021 with the ability to buy the remaining equity interest over the next three years. The decision to expedite this purchase reflects CarGurus’ goal to capture rising opportunities to strengthen operations between the two platforms and accelerate plans for solutions that power its development of a transaction-enabled platform supporting dealers and consumers through every stage of the automotive lifecycle. 

“Our work with CarOffer has unlocked meaningful opportunities to better serve our customers by integrating the scale and reach of our retail platform with CarOffer’s digital wholesale capabilities,” said Jason Trevisan, CEO of CarGurus. “As we aim to accelerate this progress to enhance the consumer and dealer experience even further, we believe that now is the right time to fully invest in CarOffer so we can be more agile in scaling solutions.” 

Upon closing, CarOffer will continue to operate as a standalone brand at its Addison, Texas location. Bruce Thompson, CarOffer founder and CEO, will step down upon completion of the acquisition. Zach Hallowell, CarGurus Head of Industry Transformation, will transition to lead the CarOffer business.