The “initial” US$25 million (A$39.4 million) is just that… for starters.

An additional performance-based consideration of up to US$88 million (A$138.6 million) is part of the deal under which Chicago-headquartered Cars.com is to take the wheel of DealerClub, reported by US-based AIM Group.

The marketplaces and classifieds business intelligence newsletter’s Deb Stowe reports the deal will “advances the company’s trade and appraisal strategy and enables entrance into a large wholesale used-car market worth over $10 billion,” according to Cars.com parent company Cars Commerce.

It will also add a transactional revenue stream to its subscription business.

AIM says the acquisition is “expected to create long-term cross-selling opportunities and acceleration of AccuTrade adoption with an attractive full lifecycle platform that seamlessly integrates retail and wholesale operations”.

Rebranded ‘Cars Commerce’ over a year ago, it calls itself an “audience-driven technology company empowering automotive that simplifies everything about buying and selling cars”.

Stowe says DealerClub has more than 650 dealer customers and generates revenue primarily through transaction fees.

Its acquisition is seen a critical step for Cars Commerce’s vision to expand into the wholesale market by catering to the large dealer segment

More at AIMgroup.com