KAR to sell ADESA US physical auction business to Carvana for $2.2B

KAR Global has reached a definitive agreemetn to sell all of its ADESA physical auction business in the U.S. to Carvana for $2.2 billion. 

The all-cash deal includes all auction sales, operations and staff at 56 ADESA U.S. vehicle logistics centers in the U.S., and exclusive use of the ADESA.com marketplace in U.S.

“KAR has always been a leader in the digital transformation of remarketing, and this transaction firmly positions us as the premier digital marketplace provider for wholesale used vehicles,” KAR chief executive Peter Kelly said in a news release. “While off-premise sales have increased over the past decade and represent over 50% of our vehicle sales today, we believe we are still in the early stages of this industry evolution, and the trends are rapidly gaining momentum. Digital marketplaces provide low cost, highly efficient venues for our sellers and buyers to transact, and our leading digital brands, platforms and technology position us well to grow as digital penetration increases.

“This transaction will allow us to focus our investments and energy on those higher growth, higher margin digital marketplaces and on delivering the most strategic solutions to our customers. By simplifying our business, we are better positioned to lead and win in the fastest growing segments of this industry.”

Auto Remarketing will have more details and continue to update this story. 

Source Article