Cox Automotive's aim of doubling the size of its business by 2034 has taken another step forward with the acquisition of digital automotive retail specialist Codeweavers Ltd.
Codeweavers, which works with both car manufacturers and retailers to provide commerce solutions and finance software will sit alongside Cox’s existing digital marketing and retail solutions business, Modix, in a drive to build its presence as a leading international provider of digital retail solutions for the automotive industry.
Established as the technology arm of a finance brokerage firm in 2002, Codeweavers became an independent business in 2012.
Over the last decade it has developed a suite of solutions that support online digital retail services for vehicle manufacturers, dealers and lenders and also offers omni-channel solutions including new car stock locators, finance calculators, finance application, checkout and e-signing.
Commenting on the completion of the business’s acquisition today (March 3), Martin Forbes, the president of Cox Automotive International, said the move formed an “integral part of our strategy to help our customers develop a strong digital retail presence”.
He added: “Today’s acquisition of Codeweavers will help establish Cox Automotive to become one of the major providers of digital retail solutions to automotive manufacturers and dealer groups across the UK and Europe.
“We are incredibly excited that Codeweavers is joining the Cox Automotive family and look forward to supporting them during their next phase of growth.”
Cox’s acquisition of Codeweavers is part of a growth strategy that aims to see the business double in size by 2034 and become the number one operator in the markets where it is present.
In March 2020, Cox Automotive announced the purchase of C Walton Ltd, its biggest ever single acquisition in the UK, strengthening its vehicle solutions offering.
It also launched Dealer Auction – Cox Automotive’s joint venture with Autotrader – back in 2019.
Commenting in the importance of the addition of Codeweavers, Forbes said: “The pandemic has clearly shown the importance of having a compelling digital retail offering and the need for innovative online technology solutions has accelerated over the last year.
“We know that any effective new or used vehicle e-commerce platform must have extensive digital capabilities built-in and Codeweavers offers an impressive range of products and software in this area.
“The company is a leading provider in this space and their solutions are integrated into the websites of some of the largest automotive manufacturers and it has recently launched a full e-commerce solution for a major OEM.
“We’re looking forward to working with them to build on their current success in the UK and Europe.”
The shareholders of Codeweavers were advised by David Kendrick of UHY Hacker Young and Caroline Litchfield of Brabners Solicitors.
Cox said that Codeweavers would retain its brand in the UK, with its chief executive and founder, Roland Schaack, reporting into Darren Sinclair, managing director of Modix International.
Forbes said: “One of the key benefits of Codeweavers is their expertise, knowledge and product will complement those of Modix.”
Schaack said: “We are thrilled to be joining Cox Automotive and excited by the opportunities that being part of a bigger business will present for both Codeweavers and Modix.
“We are extremely proud of the success of the business so far and believe Cox Automotive will enable us to grow our client base and develop our products even further.
“Today’s announcement is a fantastic opportunity to create the best digital retail offering within the automotive industry and be a true digital retail leader across the whole of Europe.”
Today’s news of Codeweavers acquisition is the second of two deals which have brought about consolidation in car retail’s ecommerce sector this week.
Yesterday AM reported that both Rapid RTC and enquiryMAX had been acquired by Keyloop – the rebranded CDK Global International business.
The rebranding of CDK Global International and its rebranding follow its takeover by tech investor Francisco Partners (FP).