CarLotz To Go Public Via A SPAC

CarLotz and Acamar Partners Acquisition Corp. — a special purpose acquisition company (or “SPAC”) — have struck “a definitive business combination agreement” that would turn the used-car behemoth into a public company. According to a press release, Fidelity Management & Research Co. and other key investors have committed to invest $125 million in the deal, in the form of common stock priced at $10 per share.

The companies said the deal would make CarLotz a public company, with a closing anticipated in the fourth quarter of 2020. The new combined company will be named CarLotz, remain listed on Nasdaq and trade under the new ticker symbol LOTZ.

Individual investors include Rick Wagoner, former CEO of General Motors.

The press release argues that “the highly-fragmented, $841 billion U.S. used-vehicle market is ripe for disruption with less than 1 percent e-commerce penetration.” The companies said that there are “significant market share expansion opportunities.”

CarLotz said it was “founded on a vision to transform the used vehicle industry.”

Acamar’s website said the company is a SPAC “formed with the intent of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.” The site added that Acamar seeks “to make a $300 million to $1 billion equity investment in a company with a leading position in its segment of operations, and presence in North America or Western Europe.”

The company’s focus is on the consumer and retail sectors. The company added that it intends to help “an already strong business expand into new markets, enter new channels, improve organic growth and pursue M&A (merger and acquisition) opportunities.”

The release said that CarLotz’s “proprietary technology and omni-channel marketplace (eliminate) the frustrations often experienced in the car buying and selling process.” Additionally, CarLotz said it “enables corporate sellers of vehicles to access the financial benefits of direct-to-retail sales opportunities — as opposed to settling for wholesale prices through a vehicle auction.”