AutoNation Inc. is buying a mobile car-repair startup that counts Mercedes-Benz Group and Porsche AG among its investors for $190 million.
The acquisition of Los Angeles-based RepairSmith Inc., which was founded in 2018, is expected to close in the first quarter of next year, AutoNation said in a statement. The announcement confirmed an earlier report by Bloomberg News.
AutoNation, the largest dealership chain in the U.S., has been broadening its service offerings since the pandemic accelerated a shift to online car sales. Earlier this year it bought CIG Financial for $85 million to set up a captive finance arm to originate auto loans, and last month it acquired a 6.1 percent stake in car-shopping website TrueCar Inc. to enhance its digital capabilities.
With RepairSmith, AutoNation will be able to send mechanics to consumers’ homes or offices if they don’t want to make a trip to the dealership.
