Cars.com Acquires D2C Media for $76M With EarnOut Option of up to $25M
Portfolio Pulse from Benzinga Newsdesk
Cars.com Inc. (NYSE:CARS) has acquired D2C Media Inc., a leading automotive technology and digital solutions provider in Canada, for $76M in cash. The payment was funded by a combination of cash on hand and borrowings under the company's existing revolving credit facility. There is also a potential for additional performance-based consideration of up to $25M based on the achievement of certain financial thresholds.
November 02, 2023 | 11:29 am
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NEUTRAL IMPACT
Cars.com's acquisition of D2C Media could potentially expand its market reach and enhance its technology capabilities. However, the financial impact of the acquisition and the additional performance-based consideration could affect the company's short-term financial position.
The acquisition could potentially expand Cars.com's market reach into Canada and enhance its technology capabilities, which could be beneficial for the company in the long term. However, the financial impact of the acquisition, including the initial cash outlay and the potential additional performance-based consideration, could affect the company's short-term financial position. Therefore, the short-term impact on the stock price is neutral.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100