The shares of AutoWeb Inc. (AUTO) were trading at $3.35 premarket at last check, rising 7.37%. To close the Monday session at $3.12, AutoWeb stock increased 5.41%. AutoWeb stock traded at 1.33 million shares on the day, which was higher than the average daily volume of 0.12 million shares during the past 50 days. The shares of AutoWeb have increased by 126.09% over the last 12 months, and they have gained 4.00% in the last week. Within the past three months, AutoWeb stock gained 17.74%, while within the last six months, it lost 2.30%. Further, AutoWeb was valued at $42.68 million with 13.25 million outstanding shares. Following the acquisition of assets from a used vehicle platform, AutoWeb stock rose.
What has AutoWeb stock acquired?
AutoWeb provides automotive dealers and manufacturers throughout the United States with high-quality consumer leads, clicks, and marketing services. In addition to providing consumers with a range of original automotive content, AutoWeb also helps them make knowledgeable car-buying decisions. AutoWeb has helped tens of millions of customers research vehicles and connected thousands of dealers with car buyers, and it also helped all major automakers promote their brands online from 1995 to the present.
AutoWeb announced the acquisition of CarZeus, a Texas-based platform for buying used vehicles directly from consumers then reselling them to wholesalers. Utilizing AutoWeb’s significant traffic acquisition capability and the management team’s extensive experience, AutoWeb plans to expand beyond CarZeus’ current market in San Antonio.
AutoWeb purchased CarZeus assets from McCombs Family Partners and CarZeus founder Phil Kandera at an all-cash price of $400,000. As a result of this acquisition, AutoWeb is better positioned to participate in the highly fragmented and large used car disposal market. It is estimated that the market includes approximately 25 million vehicles per year with a total estimated value of about $230 billion.
Moreover, the acquisition also fits AutoWeb’s strategic investment in its automotive brands, such as Car.com and UsedCars.com, which aim to provide progressively better experiences to consumers through product innovation. It is intended that this blended online and offline approach can benefit both consumers and resellers, as the former will be able to access a new, efficient and cost-effective source of inventory.
How AutoWeb will leverage the acquired assets?
Customers of AutoWeb (AUTO) cross-shop new and used vehicles online, and most importantly, they usually dispose of their vehicles as part of their ultimate transaction or transaction set. As part of a comprehensive omni-channel engagement, AutoWeb will provide optimal value to both clients and consumers by bringing a retail-ready omni-channel engagement model that includes services such as vehicle disposal.
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