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Adesa to acquire online auction firm for $210M

IBJ Staff
August 16, 2011
Keywords
Automotive, KAR Auction Services, Transportation, Distribution & Logistics
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Adesa Inc. has agreed to buy Redwood City, Calif.-based OpenLane Inc., an online auction company for auto dealers, for $210 million in cash, the companies announced.

Adesa, a subsidiary of Carmel-based KAR Auction Services Inc., expects to finance the transaction with available cash and proceeds from its revolving credit agreement.

OpenLane expects to sell more than 300,000 vehicles to dealers this year and generate about $100 million in revenue, KAR CEO Jim Hallett said in a prepared statement.

“OpenLane is a natural fit for the KAR family of companies as it extends our online product offerings, provides a complementary customer base and adds talented members to our management team,” he said.

Peter Kelly will continue as OpenLane’s CEO and will report to Hallett.

The deal is subject to regulatory conditions.

KAR is the holding company for Adesa, the nation’s second-largest used-vehicle auction chain.

The acquisition was announced after markets closed Monday. KAR shares were trading late Tuesday morning at $14.63, up 56 cents, or 4 percent, on the day.

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  • bad business decision
    JimAugust 16, 2011 3:41 PM
    KAR Holdings bought a company with a $90 million dollar treble law suit pending? They bought Openlane which owns RDN and RDN and it's LPR partner are named in a huge lawsuit. What were they thinking? Their stocks will continue to decline for sure now. Since KAR also owns PAR and PAR doesnt like RDN software and refuses to use it, maybe they could hand the RDN program off to MVTRAC and call it a day?
    Reply to CommentFlag Comment
  • ADESA
    EmilyAugust 16, 2011 10:49 AM
    ADESA is an acronym for Automotive Dealer Exchange Services of America and should be capitalized.
    Reply to CommentFlag Comment

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  1. Saw the Indy Men's Chorus "Music of Gilbert & Sullivan" at the Indiana Historical Society on Sunday evening.

  2. Temporary workers are not "tools" they are people and companies that keep large amounts of temp staff are cheating.

  3. I miss having them around. I hope one of their stores is in the general Meridian/86th Street area. I will make good use of it.

  4. The Fringe! Plus, the simple fact that there are so many local faves in such close proximity to each other.

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