Benzinga | Oct 12, 2021 07:27AM EDT

Vroom To Acquire Auto Lender UACC For $300M

* 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.