Vroom to buy Texas Direct Auto for $95m

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deal merger picture: photo to go

The online second hand car sales company, headed by CEO Allon Bloch, has an R&D center in Ness Ziona.

Second hand online car sales company Vroom is acquiring Texas Direct Auto (TDA). The acquisition will be funded through a $95 million Series C equity round, and is subject to regulatory approval. The two brands will co-exist and continue to operate online separately. TDA was founded in 2002 and is based in Houston, Texas. As the number one retailer on eBay Motors, TDA is the pioneer in car retailing online.

Vroom CEO Allon Bloch, former Co-CEO of Israeli website builder Wix, said, “We have always admired Texas Direct Auto’s capabilities and we’re excited to partner with them, especially considering their groundbreaking, RFID-led automated reconditioning process. Their continued innovation has enabled the most technologically advanced used-car operation to grow to an enormous scale. Now, with Vroom, this combined scale gives customers an expanded inventory of low mileage, professionally reconditioned cars, at great prices.”

The combined company, headquartered in New York, will now have 500 employees, including its Israeli R&D center in Ness Ziona as well as auto reconditioning facilities in Dallas, Houston and Indianapolis.

Vroom chairman Elie Wurtman said, “Texas Direct Auto has led online car retailing and their team shares our business spirit of making buying and selling cars online the smartest and easiest way to transact, with an experience that is transparent and fun. The continued investment in technology allows the combined company to tackle the operational complexity of making this vision a reality. Millions of people who want to sell their cars or purchase new ones will be able to do it in a more efficient and empowering way that’s as easy as any other e-commerce transaction.”

Published by Globes [online], Israel business news - www.globes-online.com - on December 16, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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