Transaction Extends Business More into Used Automobiles, Increasing TAM
Enterprise Intends to Leverage its Efficient Site visitors Acquisition Capabilities, Administration Practical experience to Generate Advancement, Strengthen Profitability and Scale Processes
TAMPA, Fla., Aug. 02, 2021 (Globe NEWSWIRE) — AutoWeb, Inc. (Nasdaq: Automobile), an automotive matchmaking platform connecting in-marketplace motor vehicle buyers to their most well-liked car or truck transactions, these days announced it has acquired the property of CarZeus, a San Antonio, Texas-dependent utilised car acquisition system that purchases cars straight from consumers and resells them as a result of wholesale channels. AutoWeb intends to extend its used motor vehicle acquisition giving over and above CarZeus’ current San Antonio market by leveraging AutoWeb’s substantial targeted traffic acquisition capacity and the administration team’s depth of relevant practical experience.
“As a matchmaker, AutoWeb can help guidebook individuals via the significant, complex, and multi-choice transaction of obtaining a car or truck. Furnishing our in-marketplace viewers with this alternate to dispose of their current vehicles is a normal product or service line extension,” stated Jared Rowe, president and CEO of AutoWeb. “CarZeus presents an different disposal knowledge for customers in search of to market their autos. We consider that AutoWeb’s distinctive ability to efficiently recognize in-marketplace car or truck potential buyers is a vital differentiator that will permit us to match extra of those people buyers to the automobile disposal experience they choose.”
This acquisition positions AutoWeb to participate a lot more meaningfully in the shopper used motor vehicle disposal industry, which is really fragmented and very massive. Field estimates measurement that market place to include things like roughly 25 million autos annually with a total estimated worth of somewhere around $230 billion. Importantly, this acquisition also supports AutoWeb’s ongoing item investment decision system to deliver ever more useful consumer encounters by means of its portfolio of automotive manufacturers, which include Automobile.com and UsedCars.com. This blended on-line and offline strategy is meant to not only benefit buyers, but also suppliers who will get access to a new resource of inventory in an productive and cost-productive way.
AutoWeb’s abilities kind a system that is perfectly-suited to assistance important utilised auto acquisition expansion. The organization believes its successful viewers acquisition, portfolio of automotive models, proprietary engineering, and differentiated details property incorporate to develop a novel marketplace posture that will profit consumers and buyers alike.
“This is in which we see automotive marketplaces evolving both domestically and globally,” explained Rowe. “Our viewers is by now cross-browsing new and employed cars on the net, most usually with automobile disposal as a ingredient of their top transaction or set of transactions. We prepare to undertake an omni-channel engagement product that incorporates retail-completely ready operation and services, like motor vehicle disposal, to produce improved price to each customers and consumers.”
AutoWeb’s acquisition of CarZeus property closed on July 31, 2021, at an all dollars price tag of $400,000 for assets owned by San Antonio’s McCombs Household Companions and CarZeus founder Phil Kandera.
“McCombs Loved ones Companions is proud to have guided CarZeus by means of its preliminary stages of progress and good results,” stated Joe Shields, director of business progress for vast majority-proprietor McCombs Family members Partners. “AutoWeb is properly-positioned to tutorial CarZeus from here, so it can reach its complete potential.”
Kandera, who founded CarZeus in 2017 after a long time of dealership working experience, has joined AutoWeb as government director, car acquisition, and will lead working day-to-day functions of AutoWeb’s utilized vehicle acquisition enterprise beneath the CarZeus model. As an inducement for becoming a member of the enterprise, Kandera was granted options to acquire 50,000 shares of the company’s prevalent stock at an physical exercise cost equal to $3.12 per share, which was the closing selling price of the prevalent stock on The Nasdaq Cash Market these days. The solutions have a phrase of 7 decades, and one particular-3rd of the choices will vest on the first anniversary of the grant day and a person thirty-sixth of the choices shall vest on every successive regular monthly anniversary of the grant day for the adhering to 24 months.
About AutoWeb, Inc.
AutoWeb, Inc. offers substantial-quality customer potential customers, clicks and connected advertising and marketing services to automotive dealers and makers all over the United States. The organization also presents shoppers with sturdy and initial on the net automotive material to support them make educated automobile-acquiring choices. The company pioneered the automotive Net in 1995 and has since served tens of tens of millions of automotive buyers investigation motor vehicles linked countless numbers of dealers nationwide with motivated car or truck consumers and has served just about every big automaker market its brand online.
Forward-Hunting Statements Disclaimer
The statements contained in this press release that are not historical details are ahead-looking statements below the federal securities guidelines. Words these types of as “anticipates,” “could,” “may,” “estimates,” “expects,” “projects,” “intends,” “pending,” “plans,” “believes,” “will” and phrases of identical substance, or the negative of those people words, employed in connection with any discussion of long run functions or economic overall performance establish forward-wanting statements. In certain, statements pertaining to expectations and prospects, new product or service anticipations and capabilities, projections, statements with regards to long term functions, and our outlook relating to our general performance and expansion are ahead-hunting statements. These forward-seeking statements, including that (i) the business intends to leverage its economical website traffic acquisition abilities, and administration expertise to travel expansion, improve profitability and scale procedures (ii) AutoWeb intends to expand its utilized auto acquisition supplying past CarZeus’ current San Antonio marketplace by leveraging AutoWeb’s major site visitors acquisition capability and the administration team’s depth of related encounter (iii) that the organization believes that AutoWeb’s special potential to successfully establish in-marketplace vehicle potential buyers is a crucial differentiator that will permit the enterprise to match far more consumers to the automobile disposal knowledge they favor (iv) the corporation thinks that its blended on the internet and offline tactic will not only benefit buyers but will also profit shops who will attain entry to a new source of inventory in an effective and price tag-effective manner (v) the corporation believes that the company’s successful viewers acquisition, portfolio of automotive brands, proprietary technology, and differentiated facts assets incorporate to make a novel industry placement that will reward buyers and clients alike and (vi) the firm designs to undertake an omni-channel engagement product that incorporates retail-all set features and companies, like auto disposal, to provide improved price to the two shoppers and buyers, are not assures of long term overall performance and involve assumptions and dangers and uncertainties that are tricky to predict. Precise results and outcomes may perhaps vary materially from what is expressed in, or implied by, these ahead-on the lookout statements. AutoWeb undertakes no obligation to update publicly any forward-on the lookout statements, irrespective of whether as a end result of new information and facts, potential occasions or or else. Among the important variables that could result in true results to vary materially from individuals expressed in, or implied by, the forward-looking statements are the responses of federal and state authorities to the COVID-19 pandemic adjustments in typical financial circumstances the economical situation of vehicle suppliers and sellers disruptions in car offer chains and production variations in gas rates the financial affect of terrorist attacks, political revolutions, military actions, or all-natural disasters (such as floods, earthquakes, tornadoes and hurricanes and pandemics and epidemics) failure of AutoWeb’s web protection actions the financial affect of epidemics and pandemics vendor attrition strain on supplier charges improved or surprising competition the failure of new merchandise and expert services to meet up with anticipations failure to retain key employees or bring in and integrate new workers true expenses and costs exceeding prices taken by AutoWeb alterations in legislation and rules fees of legal matters, like, defending lawsuits and endeavor investigations and associated matters and other issues disclosed in AutoWeb’s filings with the Securities and Exchange Commission. Investors are strongly encouraged to critique the company’s Yearly Report on Type 10-K for the yr ended December 31, 2020 and other filings with the Securities and Trade Fee for a discussion of dangers and uncertainties that could impact the business enterprise, operating final results or economical problem of the firm and the market place price of the company’s stock.
Beth P. Quezada
Communications & Society Manager