Two of the world’s top car sales software firms are to merge and to set up a rival to the likes of Cazoo and Cinch.
Automotive Transformation Group (ATG) is a merger between Autofutura and GForces and says it already handles a transaction every 3 and a half minutes or deals worth in total US$4.25bn a year.
The new group is backed by private equity group Inflexion and brings together data-driven business Autofutura with e-commerce and omnichannel supplier GForces.
ATG is forming as investor interest in selling cars online has hit fever pitch.
Cazoo is set to list with a value of US$7bn New York later this year through a merger with SPAC Ajax even though it has only been trading for a year.
Cinch, meanwhile, was only launched in October by owner Constellation Automotive, which owns webuyanycar.com and BCA, but has already attracted more than £1bn in private funding.
By contrast, ATG operates already in 96 countries and supplies 10,000 locations serving 20 of the world’s leading car makers.
Based in the UK, the business is run by data specialist Christian Erlandson as CEO and car sales veteran David Riemenschneider as Chairman.
In a statement, Erlandson said: "The digitisation of the automotive sales process is accelerating at an unprecedented pace.
“By merging Autofutura's data intelligence insight with GForces' e-commerce solutions, there is huge potential to support our customers in streamlining the consumer journey, accelerating sales and driving revenue from the first transaction."
Simon Turner, Managing Partner at Inflexion, added: "The combination of Autofutura with GForces unlocks a unique and highly relevant technology proposition for the automotive retail industry, against a backdrop of accelerating change and disruption for dealers and OEMs.”