In partnership with Huron, management successfully transformed XLerate from a traditional, on-site, wholesale auto auction business into a multi-site, multi-platform, tech-enabled leader in the industry. Management executed on multiple strategic initiatives to diversify sales channels, drive auction volumes, expand service offerings, and better serve its customers. Together with Huron, management completed the acquisition of Liquid Motors, a SaaS platform providing clients efficiency tools to reach more customers by selling cars on third party online platforms and facilitating the posting of vehicles to marketplaces. XLerate has the ability to offer in-lane, mobile, and digital auctions in addition to a broad array of ancillary services.
To support rapid growth and make the most of scale, we professionalized corporate operations and built a sophisticated business intelligence function at our corporate headquarters. Additionally, the methodical implementation of standard operating procedures, formalized KPI metrics, and centralized vendor relationships allowed XLerate to simplify operations and streamline costs, driving measurable improvement at each location. Our efforts propelled XLerate to become the clear acquirer and partner of choice for founder-owned auto auctions.
During our seven-year partnership, XLerate completed 11 add-on acquisitions, expanding its geographic footprint from 6, mostly Southern states, to 12 states located throughout the South, Midwest, and Northeast. Today, XLerate operates 17 auction sites in California, Florida, Georgia, Illinois, Michigan, Ohio, Pennsylvania, South Carolina, Texas, Indiana, Louisiana, and Wisconsin. Our efforts resulted in a 3-fold increase in revenue, a 4-fold increase in EBITDA, and transformed XLerate into the nation’s 4th largest and fast-growing full service used-car auction.
In 2021, we sold XLerate to New York-based private equity firm, Brightstar Capital Partners.