News | 2 min read
Richmond’s CarLotz agrees to merger deal with Shift Technologies
August 15, 2022
CarLotz Inc. (NASDAQ: LOTZ), a Richmond used car company that’s struggled amid a tight market, said Tuesday it has agreed to combine with San Francisco’s Shift Technologies Inc. (NASDAQ: SFT) in an all-stock merger.
Shift also works in used car sales, but through e-commerce on the West Coast. CarLotz started as a local startup and sells used vehicles on a consignment as opposed to a commission model. It primarily operates in the Mid-Atlantic after scaling back its brick-and-mortar operations in June in what it billed at the time as a cash-saving move.
CarLotz shareholders are expected to receive about 0.69 shares of Shift common stock for each CarLotz share they own, the companies said. The combined company will be headquartered in San Francisco and trade on the Nasdaq under Shift’s ticker symbol, “SFT.” The companies said they expect to have a combined cash position of $125 million after the deal closes, likely in the fourth quarter. Shift’s equity holders are expected to own about 52.9 percent of the combined company, while CarLotz’s equity holders will own roughly 47.1 percent.
“We see immense opportunity in combining Shift’s proprietary acquisition engine, which excels in buying cars from customers, with CarLotz’s unique consignment relationships to create a truly differentiated inventory strategy,” Shift President Jeff Clementz, who will become the combined company’s CEO, said in a statement. “There’s also potential to leverage Shift’s back-end technology and online checkout flow at CarLotz’s retail locations, to drive significant process and cost efficiencies.”
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- Topics:
- City of Richmond
