Minneapolis-based Outsell Acquired in $100M Deal
Minneapolis-based Outsell has been acquired by Syracuse, New York-based Impel for more than $100 million, the companies announced Tuesday. Outsell also gets stock in Impel as part of the transaction.
The parties say the deal will create “the auto industry’s first end-to-end AI sales and marketing automation platform,” they said in a news release issued Tuesday.
Combined, the two companies will serve more than 8,000 car dealerships across 51 countries.
Outsell, a software-as-a-service company which already sells an artificial intelligence-driven sales and marketing platform, is based in Minneapolis. The company counts Luther Automative Group and Walser Automotive Group among its clients.
The firm uses machine learning and predictive AI to determine whether communication would engage a customer. Then, through its software platform, it automatically sends the “right message, at the right time” to the consumer through text, email, or direct mail, CEO and founder Mike Wethington said in an interview.
Impel provides dealers with AI-driven customer lifecycle management. This marks Impel’s third acquisition in the last few years. It bought Tbilisi-based Pulsar AI in 2021 and Los Angeles-based CarLabs.ai in 2022.
Last year, Impel received a $104 million growth equity investment led by Silversmith Capital Partners.
“Dealers are increasingly turning to AI fueled by first-party data” to mitigate disruptions to retailing like demand for electric vehicles, higher interest rates, and digitization, the news release said.
Outsell’s work “has earned them a reputation in the industry that is second to none,” said Impel CEO Davin Daly in the news release. “This acquisition enables us to provide a unified AI platform that connects every channel and touchpoint across the automotive retailing ecosystem.”
Wethington founded Outsell in 2004 with backing from local investors and $5 million from Northern Pacific Group to continue expanding the company. Early last year, Wethington decided the company needed more capital to provide greater opportunities for its employees and customers.
Represented by investment banking firm Houlihan Lokey, Outsell sought a company with “really deep pockets” to invest in the market, he said.
Impel excels at “engaging with a customer with generative AI messaging,” and combining the two companies will create a “powerhouse in the industry,” Wethington said.
With the acquisition, Wethington will join Impel’s board. Outsell employees, not including Wethington, will also get $30 million from the deal, he noted.
Outsell currently employs 170 people, slightly more than half of whom are based out of its Minneapolis headquarters, with the rest working remotely from across the country. The company has delivered more than 500 million messages in the past 12 months, and on a daily basis, it tracks the habits of 68 million consumers, Wethington said.
By acquiring Outsell, Impel will have “an unprecedented ability to deliver frictionless, personalized experiences on demand,” said Michael Quigley, Impel’s co-founder and chief strategy officer, in the news release.
