Carmel-based OpenLane announced Monday that it plans to acquire Manheim Canada from Atlanta-based Cox Automotive in a $95 million deal that’s expected to close within 30 days.
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If the new name sounds familiar, that’s because KAR has been using it for a portion of its business after acquiring a California-based online auction company named OpenLane Inc. in 2011.
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Hallett is retiring from his positions as executive chairman and board chairman, the Carmel-based company announced Friday. He will remain a member of KAR’s board of directors.
The quarterly loss reported after the close Thursday caps a disastrous year in which Carvana’s stock plummeted 98%, erasing almost $37 billion of market capitalization. Carvana spent $2.2 billion last year to acquire Carmel-based KAR Auction Services Inc.’s physical auto auction business, ADESA.
“Outwork everyone else. This doesn’t always mean putting in more hours or sacrificing everything else in life for your career. But it does mean always working to improve yourself and to do whatever you can to help your customers succeed.”
Carmel-based KAR Auction Services Inc., which has been working to transform itself into a digitally operated company, took a big step toward that goal when it sold its U.S. physical auto auction business to Tempe, Arizona-based Carvana for $2.2 billion in cash.
Eliminating the back-office jobs in the U.S. and Canada and moving the functions overseas is expected to result in cost savings of more than $10 million per year, according to the auto auction firm.
The sale of ADESA to Arizona-based Carvana, which KAR announced in February, is part of KAR’s ongoing shift away from physical auto auctions toward digital platforms and tools.
The Carmel-based auction services company declined to say how many of its 1,000 employees in Indiana would be affected by the transaction. But it said the buyer—Carvana Co.—will not require any employees to relocate.
About 4,500 employees of ADESA and KAR will be transferred to Carvana as part of the sale. That’s just under 50% of the company’s total head count. According to IBJ research, KAR has about 9,600 employees worldwide and 1,150 employees in Indiana.
Carmel-based KAR Auction Services Inc. on Wednesday reported better-than-expected fourth quarter earnings and full-year results that were much better than the previous year’s.
Escondido, California-based Carwave, founded in 2009, serves franchised and independent dealers in California and has been expanding into other states, including Arizona, Nevada, Oregon and Texas.
Escondido, California-based Carwave, founded in 2009, serves franchised and independent dealers in California and has been expanding into other states.
When the pandemic hit last spring, KAR Global had little choice but to shut down its in-person, wholesale auto auctions, which had been the publicly traded company’s backbone for years. But within two weeks, the Carmel-based company was back up and running—with 100% remote auctions. So how did KAR make it happen?
Auction Frontier sells a cloud-based software called Velocicast that is the backbone of KAR’s live, online auto auctions.
The strategic investment creates a partnership between the two companies that is expected to bring KAR customers a new slate of automated vehicle inspection products.
Peter Kelly, who joined the company in 2011 when he sold KAR Auction Services his 11-year-old online vehicle auction firm Openlane, has been named CEO.
The Carmel-based used and salvaged vehicle auctioneer lost $17.1 million, or 21 cents per share, in the period, down from a profit of $19.8 million, or 15 cents per share, in the same quarter of 2019.
The Carmel-based company said its results for the first nine months of 2020 have been “significantly impacted by the COVID-19 pandemic.”
KAR Global plans to expand upon the online automotive auction services it provides through TradeRev by acquiring BacklotCars’ longer-term online auctions, which allow dealers to bid on cars over the course of several days.
In its second quarter, the Carmel-based company lost $32.3 million and saw year-over-year revenue plummet 42%, from $719.1 million to $419.0 million.
The companies attributed the terminations to business conditions caused by the ongoing pandemic.
