CarGurus, the car shopping website used by 19 million consumers and 14,000 car dealers in the US, is to establish its European headquarters in Dublin.
The IDA Ireland-supported investment in Ireland is expected to result in 100 new jobs over the next three years.
The Dublin office is the company's first branch outside the US.
The company uses search technology, data analysis and community reviews to help consumers easily find the best car deals from the best-rated local dealerships.
Langley Steinert, CarGurus' founder and CEO, said that Dublin gives the company access to the "exceptional talent" it needs to propel its continued success in Europe.
He said the company was looking forward to joining the "vibrant tech community" in Dublin.
IDA Ireland's chief executive Martin Shanahan said that Ireland continues to attract the best and brightest of the world's technology companies.
"CarGurus is coming to Ireland for our talent and to be part of the community of tech companies that now call Ireland home. CarGurus' base here in Ireland will allow them to continue expanding their company into new European markets," he added.