By Kathryn Hardison
Shift Technologies Inc. and CarLotz Inc. said they agreed to merge in a stock-swap deal.
The combination of Shift, an end-to-end auto e-commerce platform, and CarLotz, a consignment-to-retail used vehicle marketplace, is designed to unite Shift's vehicle acquisition abilities with CarLotz's consignment relationships, the companies said Tuesday.
Under the terms of the merger agreement, CarLotz shareholders would receive 0.692158 shares of Shift common stock for each share of CarLotz common stock. The deal is expected to close in the fourth quarter, subject to shareholder approval.
Shares of CarLotz surged 27.2% to 72 cents a share in after-hours trading and Shift shares increased 10.2% to $1.41.
The combined company is expected to trade under the ticker SFT.
Shift also said Tuesday that co-founder and Chief Executive George Arison will be stepping down, effective Sept. 1, which he said is "the right move at this stage in my life."
He will be succeeded by Jeff Clementz, who currently serves as the company's president. Mr. Arison will continue serving as chairman of the board, the company said.
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