Back in January 2020, CarMax purchased a minority stake.
Despite this transaction, both companies will continue to operate independently.
This transaction brings together two of the US’ best-known auto-related name brands and will create a number of strategic initiatives. Thanks to Edmunds’ vast online reach, sellers will be able to receive an offer on their vehicle instantly. This will quickly make CarMax the largest online buyer of vehicles.
Both companies plan to leverage Edmunds’ content and technology expertise which will certainly benefit CarMax with new innovative products. In January of 2020, CarMax invested $50 million for a small stake in Edmunds. CarMax will now finalize the acquisition for an enterprise value of $404 million. Last year, Edmunds generated unaudited revenue of approximately $140 million.
“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 President and Chief Executive Officer. “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. We look forward to supporting and investing in Edmunds’ continued growth and are excited about the many opportunities ahead for both CarMax and Edmunds.”
According to Businesswire, both companies will continue to operate independently.