W.G. Nielsen & Co. Advises XLerate Group in its Merger with America’s Auto Auction

car auction concept - gavel and car key on the wooden desk

December 31, 2021

Posted 12/31/21 - Denver, CO

W.G. Nielsen & Co., a leading investment banking firm headquartered in Denver, announced today that it acted as financial advisor to XLerate Group (“XLerate”) in its merger with America’s Auto Auction (“AAA”), another leading vehicle auction provider.

Headquartered in Carmel, Indiana, and Dallas, Texas, respectively, XLerate and AAA will have a total of 39 auction sites across 19 states, as well as growing digital and mobile auction businesses and related financing. Brightstar Capital Partners (“Brightstar”) will be the controlling shareholder of the company, which will operate under the leadership of the current XLerate executive team: Cam Hitchcock, Chief Executive Officer; Chuck Tapp, EVP/Chief Revenue Officer; and Charles Kunkel, EVP/Chief Financial Officer. “The independent vehicle auction sector is poised for significant growth, as consumer demand expands, and technology continues to enhance the remarketing process,” said Mr. Hitchcock, Chief Executive Officer of XLerate. “We are thrilled to welcome our talented colleagues at AAA, and appreciate the trust placed in us by Brightstar. Together, we will develop a platform built on lasting relationships and superior service that leverages the best of digital and physical offerings, and further redefines the remarketing industry.”

“We are excited to build one of the leading platforms in the auction marketplace,” said Gary Hokkanen, Partner at Brightstar. “The exceptional talent and expertise of the XLerate and AAA teams, enhanced reach of the combined auction site networks, and Brightstar’s access to financial and operational resources, will ensure that this company continues its growth trajectory as a vital part of the vehicle sales ecosystem.”

“Our investment in AAA, following our earlier acquisition of XLerate, clearly indicates our confidence in the vehicle auction market and its value-creation potential for Brightstar investors,” said Andrew Weinberg, Founder & CEO at Brightstar.

“We are honored to have provided our automotive sector expertise and advisory services to the XLerate and Brightstar teams on this merger and look forward to continuing to support XLerate’s management as they further expand operations across the country”, said Ron Barber, Managing Director of W.G. Nielsen & Co.

About XLerate Group

XLerate Group is a leading full-service used-car auction services provider that facilitates the wholesale remarketing of used vehicles for B2B customers, delivering a critical liquidity function to enable the used car sales ecosystem. Based in Carmel, IN, XLerate facilitates the selling and buying of used vehicles at physical auction sites across 13 states as well as on digital platforms. The Company also has a full-service dealer floorplan affiliate, XLFunding. The company’s daily mission is simple and straightforward: provide the highest quality service and operational execution for dealers and institutional customers. For more information, please visit https://www.xlerategroup.com.

About America’s Auto Auction

America’s Auto Auction (“AAA”) is a leading full-service vehicle auction services provider that facilitates the remarketing of vehicles. Based in Dallas, Texas, AAA facilitates the selling and buying of vehicles, primarily via 23 physical auction sites across 15 states. The Company also has a financing affiliate, Auction Credit Enterprises. For more information, please visit. https://www.americasautoauction.com.

About WG Nielsen

W.G. Nielsen & Co. is one of the Rocky Mountain region’s premier FINRA-registered investment banking firms, specializing in mergers and acquisitions and innovative capital solutions. Founded in 1996, Denver-based W.G. Nielsen & Co. is the oldest independently owned investment banking firm in the region. The firm differentiates itself with a staff of senior investment bankers who have broad experience and important relationships in their areas of expertise. The firm’s bankers have collectively closed hundreds of transactions throughout the United States and internationally.

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