Vehicle auction and remarketing company XLerate Group said recently that it signed an agreement to acquire America’s Auto Auction, another major auction company.
Once combined, Carmel, Ind.-based XLerate and Dallas-based United States Auto Auction said it will have 39 auction sites spread over 19 states. The deal is expected to close by the end of the year.
Financial details of the transaction were not disclosed. Members of the XLerate executive team, including CEO Cam Hitchcock, will step in to oversee the company.
“The independent vehicle auction industry is poised for significant growth as consumer demand expands and technology continues to enhance the remarketing process,” Hitchcock said in a statement.
Hitchcock said the two companies will work to develop a platform that “further redefines the remarketing industry” and takes advantage of the physical and digital aspects of the auction process.
Brightstar Capital Partners, a New York-based private equity firm, closed XLerate in acquisition in late September. Brightstar will act as the majority shareholder in the combined XLerate-America auto auction company, according to a press release.
“Our investment in [America’s Auto Auction], following our previous acquisition of XLerate, clearly indicates our confidence in the vehicle auction market and its potential to create value for Brightstar investors,” Brightstar CEO Andrew Weinberg said in a statement.
It was not immediately clear whether the two auction companies will change their name as a new company or keep their own names. Automotive News has contacted Brightstar for further feedback.
Read the full story at News-Primer.com here.
