Cox Automotive acquires Israeli startup Fullpath to enhance its AI and data capabilities in the automotive industry, marking a significant move for the company's technology strategy.
Transaction overview
On April 26, 2023, Cox Automotive completed the acquisition of Jerusalem-based software company Fullpath for an undisclosed amount estimated at hundreds of millions of dollars. Founded in 2013 by Aharon Horowitz (CEO), Eliav Moshe (CPO), and Yishai Goldstein (CTO), Fullpath develops an AI-driven customer data and marketing automation platform tailored for the automotive industry. The deal solidifies Cox Automotive's position as a leader in providing technology services to dealerships, automakers, fleet operators, and consumers.
Deal structure and financing
Details on the equity/debt split, lead banks, leverage metrics, and lock-up terms remain undisclosed. Fullpath raised over $55 million from investors including Riverwood Capital, Target Global, PICO Venture Partners, and Aleph before this acquisition. The company is projected to exceed $100 million in annual recurring revenue (ARR) by 2026. No information has been released regarding any seller-retained stake or IPO optionality.
Strategic context
Cox Automotive's rationale for acquiring Fullpath centers on enhancing its AI and data capabilities within the automotive sector, addressing growing competition and technological challenges faced by dealerships today. The deal underscores Cox Automotive’s commitment to delivering advanced AI tools and infrastructure to help dealers compete more effectively in a rapidly evolving market environment.
Fullpath’s founders identified the automotive industry as an opportunity after meeting investor Elie Wurtman in 2016, leading them to pivot their business strategy significantly. Fullpath's platform unifies customer data from various dealership systems into a single accurate profile, enabling highly personalized marketing campaigns at scale and aligning with inventory and business goals.
Regulatory path
The acquisition did not require review by any specific regulatory body due to the nature of the deal and the absence of significant market overlap concerns. Cox Automotive and Fullpath operated in different segments of the automotive technology ecosystem, minimizing the likelihood of antitrust scrutiny or the need for structural remedies.