Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowAdesa 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.
Please enable JavaScript to view this content.