CHICAGO, July 26, 2016 /PRNewswire/ -- Cars.com, a TEGNA Inc. (NYSE: TGNA) company, has entered into an agreement to acquire DealerRater, the industry's largest automotive consumer review website. The transaction is subject to regulatory approval and customary closing conditions, and is expected to close by the end of August. Terms of the transaction were not disclosed.
Reviews have become critical to the car buying process, with 79 percent of car buyers and 68 percent of service customers reporting that review sites are one of the most helpful resources when selecting a car dealership.*
"We are pleased to bring DealerRater into the Cars.com family of industry-leading products and people as we create the largest dealer review platform in the automotive sector," said Alex Vetter, chief executive officer and president of Cars.com. "With this acquisition, Cars.com has solidified its position as the leader in online automotive reviews and the preeminent authority for car shoppers and owners on what to buy, where to buy and who to buy from."
Since Cars.com launched its reviews in 2011, the company has maintained its transparent model for generating consumer feedback, which better serves shoppers and customers. The addition of DealerRater and its review database further strengthens this value proposition.
"We are happy to be joining Cars.com and are proud to share a similar foundation," said Gary Tucker, chief executive officer of DealerRater. "DealerRater is uniquely positioned to lead the industry transition to finding not only the right dealer, but connecting consumers with the right person at the right dealer."
Cars.com serves as an unbiased intermediary, helping both consumers and dealers win. Through its research and shopping tools and expert editorial content, Cars.com helps millions of people navigate one of life's biggest purchases. Cars.com also empowers local dealers to be successful by connecting them with ready-to-buy consumers and providing them with digital marketing expertise to strengthen their businesses.
Launched in 1998 and owned by TEGNA Inc., Cars.com is an award-winning online destination that offers information from experts and consumers to help car shoppers and owners buy, sell and service their vehicles. With more than 30 million monthly visits to its web properties, Cars.com offers millions of new and used vehicle listings, expert and consumer reviews, side-by-side comparison, build and price tools, unbiased editorial content, service and repair resources, multiple options to sell a vehicle, and much more.
Founded in 2002, DealerRater is the world's leading car dealer review website that connects consumers with the right person at the right dealership. The site offers more than 2.5 million sales and service reviews across 41,000 U.S. and Canadian dealerships, including a network of more than 5,600 Certified Dealers. More than 14 million consumers read DealerRater content across the web each month. By offering a product suite that allows qualified dealerships to manage their reputations and achieve higher SEO rankings, DealerRater supports new customer connections by growing online presence. DealerRater is majority owned by Boston-based Great Hill Partners.
TEGNA Inc. (NYSE: TGNA) is comprised of a dynamic portfolio of media and digital businesses that provide content that matters and brands that deliver. TEGNA reaches more than 90 million Americans and delivers highly relevant, useful and smart content, when and how people need it, to make the best decisions possible. TEGNA Media includes 46 television stations and is the largest independent station group of major network affiliates in the top 25 markets, reaching approximately one-third of all television households nationwide. TEGNA Digital is comprised of Cars.com, the leading online destination for automotive consumers, CareerBuilder, a global leader in human capital solutions, and other powerful brands such as G/O Digital and Cofactor. For more information, visit www.TEGNA.com.
*Source: 2016 Automotive Social Media Trends Study by Digital Air Strike