Cliff Banks - The Banks Report

PureCars Sold to Raycom Media

October 29, 2015 — The vendor acquisitions keep coming as PureCars announced earlier this week it has been acquired by Raycom Media. It’s an intriguing acquisition for Raycom, an employee-owned broadcast company that owns 51 television stations in 38 markets reaching more than 13% of U.S. TV watching homes.

PureCars is a digital automotive advertising platform that was founded by Jeremy Anspach in 2007. It appears that Raycom will use PureCars to provide dealers, automakers and tier two ad associations with an integrated advertising approach across broadcast and web-based channels. PureCars will continue to operate as a separate unit of Raycom.

Dealers that are clients have told TBR that PureCars one of the best marketing platforms in the automotive retail space. It is one of Google’s advertising program’s seven preferred partners in the automotive retail space. The company has done a good job of figuring out how to match potential customers with the right dealer.

The company began growing quickly the last couple of years and had about 150 employees at the time of sale with nearly 100 of them hired within the last year. It generated more than $21 million in revenue in 2014 and reportedly was on track to more than double that this year.

Anspach and his co-founderrs raised $10 million combined in 2013 from Stage 1 Ventures and Gemini Investors. Other than those two investments, the company primarily bootstrapped itself the last several years.

There was no word on the sales price although estimates were between $110 and $130 million. Other vendors in the space have indicated they looked at acquiring PureCars this year, but passed for various reasons. Nevertheless, put PureCars on the list of companies to watch.

 

 

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