Tegna’s Cars.com to Acquire DealerRater

Tegna’s Cars.com to Acquire DealerRater

July 26, 2016 — Tegna announced this morning that its subsidiary Cars.com has acquired dealer review company DealerRater. The acquisition, which is scheduled to close in August, will give Cars.com four million consumer-submitted reviews.

The company was founded in 2002 by Chip Grueter. In late 2013, private equity firm Great Hill Partners took a majority position in DealerRater.

Company president Gary Tucker and his team will remain with Cars.com in the Massachusetts office. Terms of the deal weren’t announced.

We’ll have more analysis following Tegna’s earnings call today. The company’s earnings-per-share of $0.50, beat analysts projections of $0.47. Meanwhile, it fell short on revenue, generating $811.79 million in the second quarter versus the consensus estimate of $814.56 million.

This is the 15th acquisition in the automotive retail vendor space this year. For more analysis and a recap of deals completed this year check out:

TBR’s 2016 Mid-Year Automotive Retail M&A Report

 

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