Carmel-based KAR Global (NYSE: KAR) has announced a $550 million strategic investment through the placement of newly-issued stock. The vehicle remarketing and technology company says it will use the funding to expedite resuming operations, sustain its technology platforms, and help navigate the economic recovery from COVID-19.
The investment was led by London-based private equity advisory firm Apax Partners, with participation from Periphas Capital LP in New York.
“KAR took early and decisive steps in response to COVID-19 to protect the safety of our employees and customers, preserve our capital position and keep our operations moving forward,” Jim Hallett, chief executive officer of KAR, said in a news release. “This transaction will help us continue to support our global customers and further accelerate our digital transformation. Apax is the right strategic partner for our company, employees and stockholders, and their investment reinforces the strength of our brands, market position and long-term strategy for growth and expansion.”
Roy Mackenzie, partner at Apax Partners, says KAR’s digital platforms and investments in data analytics has positioned the company to “thrive in the new digital normal.”