Carmel-based KAR Global (NYSE: KAR) has announced plans to acquire an online dealer-to-dealer marketplace headquartered in California. The deal for CARWAVE Holdings LLC, which is expected to close before the end of the year, is valued at $450 million.
KAR Chief Executive Officer Peter Kelly says the acquisition will advance the company’s growth strategy in the dealer-to-dealer market.
“CARWAVE has a strong, active dealer network in California — the country’s largest wholesale automotive market, as well as a growing presence in Arizona and Texas. The acquisition will enhance our continued growth in all of these areas while providing each company’s unique customers with greater choice through an expanded buyer and seller base,” Kelly said in a news release. “CARWAVE’s asset-light, technology-forward business model, with approximately 100,000 vehicles sold over the past 12 months, will enable us to continue driving innovation, achieve immediate profitability across our dealer-to-dealer offerings and enhance our position in the highly competitive dealer-to-dealer space.”
Once the deal closes, CARWAVE co-founders John Lauer and Bill Lauer, along with other members of its leadership team, will remain with the combined company. KAR says it plans to continue operating the CARWAVE headquarters in Escondido, California.
“Our two organizations share a passion for innovation, a dedication to customer service and a commitment to making wholesale easy,” Jon Lauer, president of CARWAVE, said. “And we look forward to combining our great networks of trusted dealers and delivering the best, most convenient and profitable wholesale solutions possible.”
KAR Global did not specify whether any other jobs would be affected by the deal.