DealerOn acquires Sincro

[Chris Cachor]

Didn't see this coming

DealerOn Acquires Sincro from Ansira

/PRNewswire/ -- DealerOn, a leading provider of websites and sales and marketing enablement technology for automotive dealerships, today announced that it has...

www.prnewswire.com

 

[Alex Snyder]

I wonder how much money Ansira lost on Sincro? Had to have been a good deal for DealerOn.

 

[Ryan Everson]

And last I heard, DealerOn was hoping to get acquired by someone

 

[Chris Cachor]

I wonder how much money Ansira lost on Sincro? Had to have been a good deal for DealerOn.

I remember looking at the deal closer and I believe Ansira paid $10M. However, they assumed all overhead, which I think was pretty substantial. Ansira was actually less headcount than Sincro at the time which I was surprised by. What is quite crazy is this was all right when US went into lockdowns when the sale was announced. I think it was early April and uncertainty was insane.

 

[Alex Snyder]

And last I heard, DealerOn was hoping to get acquired by someone

Makes sense. They connected with private money (Automotive News link) in January of 2020… really lucky timing! However, the acquisition money for their size seems tight at the moment. You break a certain revenue and there are only a small handful of players who can buy you. That decreases the multiple.

 

[Ryan Everson]

I remember looking at the deal closer and I believe Ansira paid $10M. However, they assumed all overhead, which I think was pretty substantial. Ansira was actually less headcount than Sincro at the time which I was surprised by. What is quite crazy is this was all right when US went into lockdowns when the sale was announced. I think it was early April and uncertainty was insane.

Maybe DealerOn will pay Ansira's outstanding rent now

 

[Ryan Everson]

Makes sense. They connected with private money (Automotive News link) in January of 2020… really lucky timing! However, the acquisition money for their size seems tight at the moment. You break a certain revenue and there are only a small handful of players who can buy you. That decreases the multiple.

CarGurus would make sense as a potential suitor, but I know the website business isn't the most lucrative and is pretty support intensive.