Shift, an end-to-end auto e-commerce platform for used cars, has entered into a definitive agreement to acquire certain assets of Fair Technologies for a combination of cash and shares of its Class A common stock.
Shift has also entered into a commitment letter with SoftBank Group, whereby it has agreed to purchase senior unsecured notes due in 2025, which will be used to fund the acquisition.
Over the last 18 months, Fair’s product and design team has been developing an online marketplace platform that enables consumers to shop an inventory of cars from dealer partners, get approved for financing from a network of in-platform lenders, and sign for the one they want digitally.
Through the platform, dealers can manage the entire transaction via a proprietary digital onboarding platform, then easily schedule an at home delivery. The platform is the ideal solution for dealers to participate strategically in e-commerce, grow market share and develop long-term relationships with customers. Its technology, team and deeply established dealer relationships will allow Shift to accelerate its vision of becoming the destination marketplace for car ownership.
Brad Stewart, Fair’s CEO, said, “Fair and Shift have extremely complementary cultures, and our platform and marketplace fit naturally into Shift’s operating model and long-term vision.
“Having overseen Fair’s transition from an app-based vehicle subscription service to a comprehensive lender-integrated e-commerce solution, I’ve had the privilege of viewing the opportunity in digital automotive from all sides and am convinced this acquisition will yield the scale, optionality, and tech-focused expertise that are the key to success in the industry.”
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