CarMax to acquire remaining stake in Edmunds
Goochland County company buys auto site in cash, stock deal
Goochland County-based used car giant CarMax Inc. announced Thursday that it had signed an agreement for full ownership of vehicle research website Edmunds.com Inc. in a cash and stock deal.
In January 2020, CarMax invested $50 million to acquire a minority stake in Santa Monica, California-based Edmunds. CarMax, a Fortune 500 company, will acquire the remaining shares of Edmunds for a purchase price that values Edmunds at $404 million. This transaction will be paid in a combination of cash and stock. The deal is expected to close in June. Edmunds 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 president and CEO, in a statement. “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.”
Founded in 1993, CarMax is America’s largest used-car retailer, operating 220 stores. During the fiscal year ending Feb. 28, 2021, CarMax sold more than 750,000 used cars and more than 425,000 wholesale vehicles at its in-store and virtual auctions.