Online used-car retailer Vroom has agreed to buy Vast Holdings Inc., which includes CarStory, for $120 million.
CarStory,in Austin, Texas, is a vehicle listings platform and retail services firm that says it uses machine learning to analyze more than 7 million vehicle listings per day and more than 18 million consumer sessions per month.
Vroom said the company brings predictive data to its national e-commerce platform.
“As car buyers and sellers across the country increasingly turn to e-commerce solutions, CarStory will strengthen and extend the reach of our digital retailing platform, and together we will accelerate the transformation of the massive used auto industry,” Vroom CEO Paul Hennessy said in a release Tuesday, adding that Vroom has been working with CarStory for the last two years.
Vroom’s aggregate purchase price of $120 million, subject to adjustment, includes about 60 percent cash and 40 percent shares of Vroom common stock. The transaction is expected to close next month, subject to customary approvals and conditions.
“Our mission has always been to provide data and services that enable our partners to grow and that won’t change,” CarStory CEO John Price said in the release. “We believe joining the Vroom team significantly enhances our ability to transition an industry to digital retailing and will allow our partners to reach their goals even faster.”
Shares of Vroom were up 4 percent to $36.86 in afternoon trading Tuesday.