- Vroom Inc (NASDAQ:VRM) has agreed to acquire United Auto Credit Corporation (UACC), an automotive finance company, for $300 million in cash.
- UACC acquisition accelerates Vroom’s objective to establish captive financing capabilities. UACC will join Vroom’s existing lineup of lenders available through its e-commerce platform.
- Following the acquisition, UACC will become an indirect wholly-owned subsidiary of Vroom and will continue to operate under the UACC name.
- UACC’s CEO Jim Vagim and CFO Ravi Gandhi will retain their positions following the acquisition.
- Vroom expects the acquisition to be immediately accretive to its earnings.
- Vroom will finance the purchase price through cash on hand. It held $1.5 billion in cash and equivalents as of June 30, 2021.
- Vroom expects to close the transaction either late in the fourth quarter of 2021 or early in the first quarter of 2022.
- Price Action: VRM shares closed lower by 3.47% at $20.56 on Monday.
Here’s How Much $100 Invested In Aon 10 Years Ago Would Be Worth Today
Aon (NYSE:AON) has outperformed the market over the past 10 years by 7.5% on an annualized basis producing an average annual return of 19.59%. Currently, Aon has a market capitalization of $58.99 billion.
