CARS acquires the CreditIQ Automotive fintech platform, which enables instant funding for consumers, dealers and lenders
– Advance CARS ‘growth strategy and expand TAM into the multi-billion dollar auto finance segment that is growing rapidly as online car purchase transactions accelerate
– Builds additional revenue streams and strengthens attribution for CARS while expanding the capabilities of the end-to-end transaction platform
– Increases dealer financing profit while improving operational efficiency
– Will instantly increase incremental sales and gross profits as we roll out across the network
CHICAGO, November 4, 2021 / PRNewswire / – Cars.com Inc. (NYSE: CARS) (“CARS” or the “Company”), a leading automotive marketplace platform that provides a robust set of industry-specific digital solutions, announces the signing of a definitive agreement announced to acquire CreditIQ, a cutting-edge fintech platform for the automotive industry that offers instant online credit review and approval to make online car purchases easier. The consideration for the transaction will be $ 30 million at closing, funded out of cash, with the potential for up to more $ 50 million in a performance-related cash remuneration to be earned over the next three years. The transaction is expected to close this month.
“The acquisition of CreditIQ technology makes it easier for CARS to enter the rapidly growing, multi-billion dollar car financing market and extends our TAM via the $ 35 billion Auto Advertising and Dealer Technology Markets We Operate Today. We are excited to enter this space with powerful digital solutions for merchants that will make online financing easier and enable them to better compete, “said Alex cousin, President and Chief Executive Officer of CARS. “Acquiring this scalable technology supports our vision of creating seamless omni-channel experiences and further expanding our platform capabilities for buyers and sellers, building on our competitive advantage and adding value to our shareholders.”
Dealers will have access to CreditIQ’s advanced digital financing technology, which enables the financing process to be completed online through the CARS platform through Dealer Inspire (“DI” )’s 5,200 websites, its “Online Shopper” digital retail platform and the Cars.com marketplace. Dealers benefit from improved efficiency, higher profit per vehicle retail (PVR), better lead conversion, and deeper attribution data and insights. In addition, the technology provides automated credit decisions from the merchants’ preferred lender networks, a unique selling point in the market that is specific to the CreditIQ offering.
The tens of millions of enterprising car buyers who visit the CARS platform every quarter – 142 million visits to Cars.com and an additional 247 million visits to DI dealer websites – will take advantage of the new online interactive credit check and approval marketplace, the instant one Provides financing offers and enables a full purchase transaction from the comfort of your home. In addition, lenders gain access to a large audience of car buyers in the market. The technology is to be integrated into the CARS platform in the first quarter of 2022. CARS will monetize the platform upon launch and generate revenue per transaction directly from the lenders.
CreditIQ has also built a Lending-as-a-Service (LaaS) framework that enables merchants, marketplaces, OEMs, and automotive software providers to leverage the same advanced fintech capabilities.
Founded in 2014 by automotive and loan software experts Bill Liatsis, Anthony Liatsis, and Bill Gerhard, CreditIQ is headquartered in new York and develops digital retail finance technology designed to facilitate online car sales and streamline in-store processes for car dealers. Called Bill Liatsis, CEO of CreditIQ: “CreditIQ’s technology is designed to help merchants be more efficient and profitable. The connected CARS platform allows us to continue to equip a much wider audience of consumers, merchants and lenders to work in the growing digital finance sector to be succesfull.”
ABOUT CARS.COM INC.
CARS is a leading marketplace platform for the automotive industry that provides a robust set of industry-specific digital solutions connecting car buyers with sellers. Launched in 1998 with the flagship marketplace Cars.com and headquartered in Chicago, the company gives buyers the data, resources, and digital tools they need to make informed purchasing decisions and connect seamlessly with auto dealers. In a rapidly changing market, CARS enables dealers and OEMs with innovative technical solutions and data-driven intelligence to better reach and influence buyers who are ready to buy, increase inventory turnover and gain market share.
In addition to Cars.com, the CARS brands include Dealer Inspire, a technology provider that develops solutions that make car dealerships future-proof with more efficient processes and networked digital experiences; FUEL, which enables dealers and OEMs to harness the untapped power of digital video by targeting the pure target audience of car buyers from Cars.com and DealerRater, a leading platform for car dealership rating and reputation management.
This press release contains “forward-looking statements” within the meaning of the federal securities laws. All statements that are not historical facts are forward-looking statements. Forward-looking statements include information about the Company’s industry, dealer customers, results of operations, business strategies, plans and goals, market potential, prospects, trends, future financial performance, planned operational and product improvements, potential strategic transactions, including the proposed acquisition and integration of CreditIQ and other matters and involve known and unknown risks that are difficult to predict. As a result, the company’s actual financial results, performance, achievements, strategic actions, or prospects, including the anticipated benefits of acquiring CreditIQ, could differ materially from those expressed or implied in these forward-looking statements. These statements often contain words such as “believe”, “expect”, “project”, “anticipate”, “look out”, “intend”, “strategy”, “plan”, “estimate”, “aim” “will”, “May”, “would”, “should”, “could”, “predict”, “mission”, “strive”, “more”, “aim” or similar expressions. Forward-looking statements are based on current expectations, beliefs, strategies , Estimates, projections and assumptions made by the company based on its experience in the industry, as well as the company’s perceptions of historical trends, current conditions, expected future developments, current developments regarding the COVID-19 pandemic and other factors that affect the company Such forward-looking statements are necessarily based on estimates and assumptions that the company and its management believe are reasonable based on their knowledge and understanding of the business and industry are inherently uncertain. These statements are made in good faith and the company believes these judgments are appropriate. However, you should understand that these statements are not guarantees of any strategy, performance, or results. The company’s actual results and strategic actions could differ materially from the forward-looking statements. Given these uncertainties, you should not rely on forward-looking statements when making investment decisions. Comparisons of results between current and prior periods are not intended to express future trends or any indication of future performance unless expressed as such and should be viewed as historical data only. Whether or not such a forward-looking statement will actually be achieved will depend on future events, some of which are beyond the control of the company.
Forward-looking statements are subject to a number of risks, uncertainties and other important factors, many of which are beyond the control of the company, which could cause actual results and strategic actions to differ materially from those in the forward-looking statements contained in this press release. A detailed discussion of many of these and other risks and uncertainties is available in the Company’s Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, its Current Reports on Form 8-K, and its other filings with the Securities and Exchange Commission on the company’s website at investor.cars.com or via EDGAR at www.sec.gov. All forward-looking statements contained in this press release are limited by these cautionary statements. You should evaluate all forward-looking statements in this press release in the context of these risks and uncertainties. The forward-looking statements contained in this press release are based only on information currently available to the company and speak only as of the date of this press release. The company assumes no obligation, except as required by law, to update or revise any forward-looking or cautionary statement to reflect changes in assumptions, the occurrence of unexpected or otherwise events, or changes in future results of operations over time, or otherwise.
The forward-looking statements in this report are intended to be subject to the safe harbor protection provided by federal securities laws.
View the original content to download multimedia:https://www.prnewswire.com/news-releases/cars-acquires-creditiq-automotive-fintech-platform-enabling-instant-financing-for-consumers-dealers-and-lenders-301416058.html
SOURCE Cars.com Inc.