CARMEL, Ind., April 19, 2017 (GLOBE NEWSWIRE) -- KAR Auction Services, Inc. (NYSE:KAR), today announced the acquisition of CarCo Technologies, Inc., d/b/a DRIVIN. The $43 million stock purchase transaction adds innovative data analytical capabilities to KAR’s global portfolio of automotive remarketing solutions. The combination will focus on meeting the increasing market demand for data-driven tools and decision-support among wholesale used-vehicle sellers and buyers. By integrating the companies’ unique data sets and capabilities, KAR will expand its product offerings to help customers reduce risk and improve the speed, predictability and outcomes of their transactions.
“Translating the power of data into actionable insights is a strategic imperative for KAR. It’s what our customers need and expect,” said Jim Hallett, chairman and CEO of KAR. “DRIVIN has quickly earned the reputation as a disruptor, and its robust data science capabilities are highly sought after in the industry. KAR and DRIVIN will help accelerate the delivery of innovative new solutions to our diverse customers.”
DRIVIN aggregates automotive retail, pricing, registration and other market and economic data from a variety of public and proprietary sources. The insights generated from that data are deployed through predictive pricing, inventory management and vehicle matching tools that help customers buy, sell and source vehicles more intelligently and efficiently. KAR plans to build on this foundation and leverage DRIVIN’s infrastructure and intuitive user interface to deploy its own organically developed products and services as well.
“KAR has built strong data science solutions and analytical services teams, and we’re developing integrated economic insights and predictive-model service offerings for our customers,” said Don Gottwald, chief operating officer of KAR. “The addition of DRIVIN’s innovative capabilities will enhance the potential reach and impact of our unique platform.”
Headquartered in one of Chicago’s innovation and technology incubators, DRIVIN was launched in 2015 by Groupon Co-Founders Brad Keywell and Eric Lefkofsky, DRIVIN CEO Kayne Grau and DRIVIN Chief Operating Officer Justin Mahlik. Both Grau and Mahlik will continue to lead DRIVIN at KAR as president and COO, respectively. The company will also retain the Chicago location and key members of the DRIVIN leadership team. Both companies are committed to creating a direct channel of communication, collaboration and innovation between their Chicago and Indianapolis locations.
“We’re thrilled to be part of KAR and a culture that shares our entrepreneurial spirit,” said Grau. “With data from more than 40 million transactions and ancillary services performed each year, KAR’s platform provides a unique opportunity to scale, syndicate and evolve DRIVIN’s capabilities. We look forward to powering the future of automotive remarketing for KAR’s businesses and customers around the globe.”
DRIVIN joins the already well-established presence of KAR subsidiaries in Chicago, one of the nation’s largest and most progressive automotive markets. Chicago is home to the headquarters of Insurance Auto Auctions, KAR’s salvage auction business unit, as well as the newly opened ADESA Chicago auction in Hoffman Estates. With the addition of DRIVIN, KAR will have nearly 600 employees in the Chicago market across eight different operating locations. KAR is focused on simplifying wholesale used-vehicle transactions and providing the best physical, online and mobile auction venues for customers worldwide.
About KAR Auction Services
KAR Auction Services (NYSE:KAR) provides sellers and buyers across the global wholesale used-vehicle industry with innovative, technology-driven remarketing solutions. KAR’s unique end-to-end platform supports whole car, salvage, financing, logistics and other ancillary and related services, including the sale of approximately 5.1 million units valued at over $40 billion through our auctions. Our integrated physical, online and mobile marketplaces reduce risk, improve transparency and streamline transactions for customers in 110 countries. Headquartered in Carmel, Ind., KAR has approximately 17,400 employees across the United States, Canada, Mexico and the United Kingdom. www.karauctionservices.com.
Forward Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and which are subject to certain risks, trends and uncertainties. In particular, statements made that are not historical facts may be forward-looking statements. Words such as “should,” “may,” “will,” “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “contemplates” and similar expressions identify forward-looking statements. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from the results projected, expressed or implied by these forward-looking statements. Such forward-looking statements include statements regarding the proposed transaction. Factors that may cause actual results to differ materially include risks that the businesses will not be integrated successfully, risks that KAR may not be able to achieve the expected synergies from the transaction and risks of disruption from the transaction. Factors that could cause or contribute to such differences include those matters disclosed in KAR’s Securities and Exchange Commission filings. KAR does not undertake any obligation to update any forward-looking statements.
Source:KAR Auction Services, Inc.