Online car sales business Vroom has acquired Texas Direct Auto, a Houston-based retailer.
Texas Direct Auto sells cars online and is the number one retailer on eBay Motors.
Vroom and Texas Direct Auto will continue to operate separately, out of New York. "Now, with Vroom, this combined scale gives customers an expanded inventory of low mileage, professionally reconditioned cars, at great prices," says Vroom CEO Allon Bloch of Texas Direct Auto.
The combined company will have auto reconditioning and fulfillment facilities in Dallas, Houston and Indianapolis. Vroom, founded in 2013, focuses on helping customers find accident-free, low mileage cars below market value, and then delivering those cars. The deal should help Vroom ship cars faster – the company expects that in the future, all cars can be shipped within 48 hours of purchase.
The acquisition news comes as Vroom raised $95 million in Series C venture capital funding from private equity firm Catterton, General Catalyst Partners, funds and accounts managed by T. Rowe Price Associates Inc., Allen & Co., Pico Venture Partners, Bob Mylod and Jeffery Boyd, the chairman of Priceline.
HGGC, a Palo Alto, California-based private equity firm, has also been building a company focused on car sales-related technology – AutoAlert – which it added MotoFuze LLC to earlier in December. The firm also backs automotive software provider Dealer-FX, which provides online services such as service check-ins and appointments.
In other automotive-related dealmaking activity, Carl Icahn and Bridgestone are vying over Pep Boys, and Shipston Equity Holdings LLC bought auto parts maker Compass Automotive Group.