Vroom To Acquire Auto Lender UACC For $300M

Vroom Inc 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.