CarMax will continue to reinforce its online shopping tools with its latest purchase. America’s biggest used car retailer will buy the remainder of Edmunds.com, bringing the informational website wholly under its control.
Edmunds provides information on second-hand vehicles as well as reviews of new vehicles and industry data. Despite the sale, CarMax says the website 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 CEO. “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.”
The two companies have already worked together for more than a year. CarMax first bought a minority stake in Edmunds in January 2020 worth $50 million. Today, the used car network announced it would buy all remaining shares at a price that implies an enterprise value of $404 million.
Edmunds, on its own, had unaudited revenue of $140 million last year. CarMax doesn’t expect Edmunds’ revenue to contribute to its own fiscal performance in 2022.
Together CarMax and Edmunds have already created shopping tools like “online instant offer.”
“The instant offer products on Edmunds.com and CarMax.com have put CarMax in the position to become the largest online buyer of used autos from consumers,” said Nash.
Edmunds was founded in 1966 with a view to consolidating new car specs. Edmunds.com has been around since 1995.
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