Earlier this year, Hagerty acquired approximately 40 percent equity ownership in Broad Arrow Group (Broad Arrow) as a part of its automotive marketplace strategy, the company said, and is now acquiring the remaining 60 percent of Broad Arrow for $64.8 million in an all-stock transaction.
“In addition to being trusted experts in their field, the Broad Arrow Group team shares our ethos of excellence when it comes to customer experience, so we are a natural fit,” said McKeel Hagerty, CEO of Hagerty. “We expect our additional investment in Broad Arrow to enhance our growth and profitability over time, as we intend to rapidly scale this part of our overall business.”
“After working together for a few months, we saw the compelling value proposition for the two organizations to fully integrate,” said Kenneth Ahn, CEO of Broad Arrow Group. “We look forward to serving the collectible car community in the years to come as a part of Hagerty’s comprehensive ecosystem of products and services.”
Hagerty Marketplace features a proprietary automotive classified platform that connects buyers and sellers. Marketplace also provides access to Hagerty’s portfolio of automotive-focused offerings, including Hagerty Media and Hagerty Valuation Tools. In April 2022, Hagerty also acquired Speed Digital, an industry leading provider of cloud-based technology solutions for dealers, auction houses, collectors and enthusiasts.
Broad Arrow will host its first live auction in Monterey, California, Aug. 18 in conjunction with Hagerty’s Motorlux event (formerly McCall’s Motorworks Revival) located at the Monterey Jet Center.
Broad Arrow founders and industry veterans Kenneth Ahn, Alain Squindo, Ian Kelleher, Donnie Gould, Barney Ruprecht, Alexander Weaver, David Swig, Karsten Le Blanc, Ramsey Potts, Madeline Baker and Mike Mortorano, along with their colleagues, will become a part of the Hagerty team as part of the deal, and Kenneth Ahn will continue to lead the team as President of Hagerty Marketplace.