PeopleFirst.com Completes Acquisition of giggo.com
18 September 2000
PeopleFirst.com Completes Acquisition of giggo.com
- PeopleFirst.com Acquires 100% of giggo.com From DaimlerChrysler
in Stock-Based Transaction
- DaimlerChrysler Holds 23% Ownership in Company
SAN DIEGO, Sept. 18 PeopleFirst.com, the nation's largest
independent online auto loan provider, and giggo.com, one of the Web's premier
online automotive financing sites and shopping resources, today have completed
the business combination of the two companies.
Under the terms of the agreement, PeopleFirst.com has acquired all of the
outstanding shares of giggo.com from DaimlerChrysler for a 23 percent common
stock equity interest in the combined company. In addition to the transfer of
giggo.com, DaimlerChrysler has provided $20 million in subordinated debt with
a five year term.
As part of the transaction, the existing PeopleFirst.com board of
directors will expand to include 3 members from DaimlerChrysler, bringing the
total board membership to 12 directors.
About PeopleFirst.com
Founded in 1995, PeopleFirst.com is one of the nation's leading online
vehicle lenders, originating and servicing consumer auto and motorcycle loans
via the Internet. PeopleFirst.com is the pioneer of Blank Check(SM) vehicle
lending, an innovative finance option that gives loan recipients a
no-obligation blank check that can be used for the purchase of a new or used
car or motorcycle from virtually any dealership in the country, as well as the
refinancing of existing loans. Additionally, through an exclusive agreement
with Mail Boxes Etc., PeopleFirst.com offers loans for the purchase of
vehicles from individuals.
PeopleFirst.com investors include American Express, Chrysalis Ventures, JP
Morgan Capital Corp., Madison Dearborn Partners, Mail Boxes Etc., Moore
Capital, Morgan Stanley Dean Witter Venture Partners, and Richland Ventures.
PeopleFirst.com has marketing partnerships with American Express,
Autobytel.com, Autoweb.com, CarPoint, Creditland, Edmunds.com, E*Trade Bank,
InsWeb, Kelley Blue Book, LendingTree, and NADA, among others. The company
presently offers auto and motorcycle loans in 48 states plus the District of
Columbia. To obtain more information about the company, call PeopleFirst.com
at (800) 689-1789 or visit the company's Web site, http://www.peoplefirst.com.
About giggo.com
giggo.com is one of the web's premier online automotive financing site and
car shopping resource that is fast, friendly and easy to use. This
innovative, consumer-focused service provides customers with comprehensive
automotive information, car buying research, an easy, direct loan process, and
competitive rates in both English and Spanish. giggo.com's dedicated team of
customer consultants is available 7 days a week, both on- and off-line, to
assist customers with all their car financing needs. giggo.com's automotive
finance site can be accessed at http://www.giggo.com and the exclusive online
application provider for the Associates Auto Finance site found at
http://www.AssociatesAutoFinance.com. giggo.com is also the sole finance provider
for AutoNation.com (http://www.autonation.com).
CONTACT: Lauren Yacker of Ogilvy Public Relations, 310-407-7922, for
PeopleFirst.com; or Liz Deakin of PeopleFirst.com, 619-446-3445.