Carvana acquired Car360, a Mark Cuban-backed vehicle-imaging technology company, in a deal that closed on April 12, 2018. The often-cited $22 million figure is an approximate headline characterization; Carvana’s SEC filing and annual report report different figures because they describe the deal on different bases.
What Carvana acquired and when
Carvana Group, LLC, a Carvana subsidiary, agreed on April 12, 2018, to acquire all of Car360’s stock and other ownership interests from its stockholders. The transaction closed that day. Carvana announced it on April 17, 2018, and said the subsidiary would retain Car360’s 16 employees. Carvana’s Form 8-K documents the agreement and closing; its announcement explains the company’s stated rationale.
| # | Preview | Product | Price | |
|---|---|---|---|---|
| 1 |
|
Car Buying Secrets They Don't Want You to Know: A Step-by-Step System to Win Every Car Deal | $7.99 | Buy on Amazon |
Why reports give different deal values
The figures should not be treated as interchangeable: the Form 8-K describes purchase-agreement consideration, while Carvana’s subsequent annual report presents purchase-accounting amounts net of cash acquired.
| Source and basis | Reported consideration or acquisition cost | What the figure means |
|---|---|---|
| Form 8-K, purchase-agreement terms | Approximately $6.7 million in cash, plus 930,047 new Class A units assigned an aggregate value of approximately $15.2 million | The cash was subject to post-closing adjustments for expenses and working capital. The unit value was based on a trailing average share price and stated for purposes of the purchase agreement. |
| Carvana 2018 annual report, purchase accounting | Approximately $16.7 million net of approximately $0.4 million cash acquired | The annual report describes consideration as approximately $6.7 million in cash net of acquired cash and approximately 0.5 million Class A units with a fair value of approximately $10.0 million. |
The annual report also assigns approximately $9.9 million to acquired intangible assets and approximately $9.4 million to goodwill. Those accounting allocations help explain the reported purchase accounting; they are not additional amounts to add to the purchase-agreement consideration.
#1 Best Overall
What Car360’s technology did
Car360 developed app-based vehicle photo capture and capabilities in 3D computer vision and augmented reality. In practical terms, its technology was meant to help produce more immersive views of vehicles from photographs and make it easier for online shoppers to inspect a used car remotely. Carvana said the capabilities would strengthen its vehicle-imaging tools and extend its existing 360-degree vehicle-tour concept to mobile capture.
Carvana’s 2018 annual report later described Car360 as a provider of app-based photo-capture technology and included it among companies from which Carvana acquired purpose-built technology and hired employees. The cited filings and announcement document the acquisition and integration intent, but do not establish which specific Car360 features remain in use today.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Car360’s path from Cycloramic to Carvana
Carvana’s 2018 announcement says an early version of the product launched in 2012 as Cycloramic, a 360-degree panoramic video app. The company reported that Cycloramic had more than 20 million downloads and was, at one point, the top downloaded app on Apple’s App Store. These are historical figures reported by Carvana, not independently verified current totals.
According to the same announcement, Mark Cuban took an interest after Cycloramic appeared on Shark Tank in 2013. His investment later increased as part of Car360’s 2017 Series A financing, which Carvana reported at $3.55 million. Carvana founder and CEO Ernie Garcia described the acquisition as adding “even more entrepreneurial strength in computer vision, AR and app based photo capture.”
Do these 3 things before closing this tab:
1Scan for outdated or missing drivers - takes under a minute2Clear out junk files and repair common Windows errors3Fix the driver behind crashes, sound loss and screen glitchesWhat the deal does—and does not—tell car shoppers
The acquisition shows how Carvana sought to improve online vehicle presentation by bringing imaging and visualization technology in-house. It does not establish that Car360’s app remains available, that any particular feature is still part of Carvana’s shopping experience, or how much the acquisition improved customer behavior or sales. The company’s announcement stated its intended benefit; the transaction filings establish the deal and its reported financial treatment.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
