Dealership website provider DealerOn said Monday it received an investment from private equity firm NexPhase Capital LP, a partnership the dealer vendor said will help it achieve scale.
Terms of the deal were not disclosed, though DealerOn said it will continue to be led by company founders and brothers Ali and Amir Amirrezvani and will remain based in Rockville, Md.
DealerOn said the deal with NexPhase Capital will enable more innovation and allow the company to double the size of its development teams. The company didn't disclose the current size of those teams.
"As we continue to scale the business and define our leadership position within the automotive retail industry, we are thrilled to partner with NexPhase and welcome them to the DealerOn family," DealerOn CEO Ali Amirrezvani said in a statement. "NexPhase brings deep sector knowledge, operational expertise and significant resources that will help drive DealerOn's success for years to come."
DealerOn, founded in 2004, counts more than 3,500 dealership clients and 350 employees. It holds 26 website provider certifications from automakers. In 2019, it was named one of four possible dealership website providers for General Motors, which is broadening its dealership website network beyond a single vendor, CDK Global, starting this year. DealerOn also specializes in digital marketing.
NexPhase, based in New York, counts software and services among its investment sectors, with a specific emphasis on business-to-business software.
"Now more than ever, dealers are looking for a fast, fully transparent and easy-to-manage digital marketing platform," Bob Gartland, a NexPhase Capital principal, said in the company's statement. "This investment is a testament to the tremendous efforts and hard work of the DealerOn team to make car buying in the digital age better than ever, and it marks an important next step in the company's ability to scale and deliver on the high growth potential of its platform."
Horatio Partners assisted DealerOn as its financial adviser in the deal, while Foley & Lardner LLP provided legal counsel. NexPhase had legal counsel from Lowenstein Sandler LLP.
DETROIT — General Motors plans to build four electric vehicles at Detroit-Hamtramck Assembly by the end of 2023, including battery-powered versions of the GMC Sierra and Cadillac Escalade, according to a prominent forecasting firm.
The plant, which had been scheduled to close in January, will remain open under the automaker's newly ratified contract with the UAW. The deal states that GM has agreed to invest $3 billion and use the plant to build electric pickups and vans.
Production of those vehicles is scheduled to start in 2021 and will be followed by the electric Sierra and Escalade in 2023, LMC Automotive told Automotive News. LMC is a closely watched provider of industry sales and production forecasts.
GM declined to comment Thursday on its future product plans.
Given the platform and size, LMC expects the van built at Detroit-Hamtramck to be full-size, possibly similar to the Ford Transit.
The plant's full capacity today is 160,000 vehicles per year, but after the conversion to EV production, capacity will drop to about 100,000 vehicles, LMC estimates.
GM expects to employ 2,225 people at Detroit-Hamtramck when it reaches full capacity, according to its contract with the UAW. The plant will play an integral role in GM's commitment to build 20 EVs globally by 2023.
Last fall, GM said Detroit-Hamtramck was one of four U.S. plants slated to close as part of a sweeping restructuring plan. The other three plants identified — Lordstown Assembly in Ohio and transmission plants in Maryland and Michigan — have been shut down permanently. GM last week agreed to sell the Lordstown plant to an EV-manufacturing startup.
Reuters last month reported that GM may bring back the Hummer brand on a vehicle it builds at Detroit-Hamtramck, though it's unclear which product would bear the Hummer name.