KAR Buys-Out Remainder of Dealer Tech Business
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.
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.