KAR Acquires DRIVIN to Bolster Data Analytic Capabilities and Strengthen Leading Remarketing Platform
April 19 2017 - 07:30AM
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.
KAR Contacts
Media Inquiries:
Tobin Richer
(317) 249-4521
tobin.richer@karauctionservices.com
Analyst Inquiries:
Mike Eliason
(317) 249-4559
mike.eliason@karauctionservices.com
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