KAR Buys-Out Remainder of Dealer Tech Business

Posted: Updated:
(Image of TradeRev CEO Mark Endras [pictured left] and KAR CEO Jim Hallett [pictured right] from July courtesy of TradeRev on Twitter.) (Image of TradeRev CEO Mark Endras [pictured left] and KAR CEO Jim Hallett [pictured right] from July courtesy of TradeRev on Twitter.)
CARMEL -

Carmel-based KAR Auction Services Inc. (NYSE: KAR) has announced the acquisition of the remaining half of a dealer-to-dealer auction technology platform company. The deal for Nth Gen Software Inc., which does business as TradeRev, is valued at up to $125 million. KAR purchased 50 percent of the business in 2014 for $30 million.

The latest deal follows KAR's late-September announcement that it plans to invest $80 million into a new Carmel campus that could create 400 jobs by 2020. TradeRev employs 200 at offices in Toronto, Chicago and Carmel, as well as in the field throughout the U.S. and Canada.

KAR Chief Executive Officer Jim Hallett says "the digital revolution in remarketing has begun, and the acquisition of TradeRev ensures that KAR will maintain its strong leadership position in the mobile app and online auction space. As a former dealer, I believe TradeRev is the most powerful and innovative mobile app for dealers on the market. By injecting TradeRev with the full force of KAR's technology, data, financing and service offerings, we plan to accelerate growth across North America and around the globe."

KAR Executive Vice President Becca Polak has been named president of TradeRev and chief legal officer and secretary for KAR. She calls the acquisition "a transformative moment for dealers" and adds "the speed and ease of TradeRev's mobile app is already fueling sales for thousands of dealers in the U.S., Canada and the United Kingdom. Over the next several months, we’ll continue expanding into new markets and begin leveraging KAR's data analytical capabilities to enhance the TradeRev buying and selling experience."

The full price of acquiring the remaining interest in TradeRev will play out over the next four years, as $75 million of the deal is contingent upon conditions including performance.

TradeRev CEO Mark Endras, who launched the company in 2009 with co-founders Wade Chia, Jae Pak and James Tani, will continue to serve on the TradeRev senior leadership team and has also been named chief innovation officer for KAR. Chia, Pak and Tani, KAR says, will remain in leadership positions with TradeRev.

KAR Auction Services currently employs about 17,400 workers in North America and the United Kingdom and has customers in 110 countries.

  • Perspectives

    • Focused Collaboration Leads to Effective STEM Leadership

      As a woman who has built a career in a STEM field, technology, I have come to realize that collaboration is an essential ingredient for organizational growth and survival. As my year serving as president for Women & Hi Tech comes to an end, one of the most impactful takeaways for me has been how a shared vision and strategic partnerships can help change the landscape for women studying science, technology, engineering or math in Indiana.

    More

Subscribe

Name:
Company Name:
Email:
Confirm Email:
HTML
INside Edge
Morning Briefing
BigWigs & New Gigs
Life Sciences Indiana
Indiana Connections
INPower
Subscribe
Unsubscribe

Events



  • Most Popular Stories

    • Walmart Details Crawfordsville Layoffs

      Walmart Inc. (NYSE: WMT) has announced plans to reduce its workforce at the Walmart Optical Lab in Crawfordsville. In a notice to the state, the company did not provide a reason for the reduction, but said 108 employees will be out of work by the end of September.

    • EnCom Polymers Investing in Evansville

      Evansville-based EnCom Polymers Inc. is bringing custom plastic production in-house. The company says it will invest nearly $15 million into acquiring the facility it currently leases, investing in new equipment and adding as many as 56 employees by 2021. EnCom Polymers also plans to add four production lines, a testing laboratory and an injection molder. The company currently employs 14 in Vanderburgh County and says it will add 17 positions immediately.

    • Indy Tech Vet to Lead DePauw Center

      DePauw University has tapped an Indianapolis tech veteran to become a part of its leadership team. Steve Fouty, who most recently served as chief financial officer of ClusterTruck in Indy, has been named director of the McDermond Center for Management and Entrepreneurship on the Greencastle campus.

    • MainGate to Manage Purdue Merchandise

      Purdue University and Indianapolis-based MainGate are teaming up on athletic and school merchandise. The agreement involves sales on the West Lafayette campus, online through PurdueTeamStore.com and as the university's official wholesale products provider. MainGate's other current merchandise partners include...

    • Caesars now owns Indiana Grand in Shelbyville and Hoosier Park in Anderson.

      Acquisition of Indiana Racinos Complete

      Las Vegas-based Caesars Entertainment Corp. (Nasdaq: CZR) has completed its $1.7 billion acquisition of Centaur Holdings LLC in Indianapolis. The deal adds Hoosier Park Racing and Casino in Anderson and Indiana Grand Racing and Casino in Shelbyville to Caesars' portfolio. The company says it will invest $50 million into various property improvements and IT upgrades at both facilities. Caesars says it plans to add table games to both properties, pending necessary approvals.