KAR to Accelerate Dealer-to-Dealer Growth, Profitability Through Acquisition of CARWAVE - AutoSuccessOnline

KAR to Accelerate Dealer-to-Dealer Growth, Profitability Through Acquisition of CARWAVE

Proposed transaction will complement KAR's dealer-to-dealer offerings with a leading platform in California -- the nation's largest automotive market

KAR Auction Services, Inc., d/b/a/ KAR Global (NYSE: KAR) has signed a definitive agreement to acquire CARWAVE Holdings LLC (“CARWAVE”) subject to certain regulatory approvals and other customary closing conditions. CARWAVE is an online dealer-to-dealer marketplace featuring certified mechanical inspections, buyer guarantees and a 24/7, direct offer trading format with semi-weekly live auctions. Upon closing, the acquisition will build on KAR’s consistent growth in the dealer-to-dealer segment, enhance KAR’s position in the highly fragmented wholesale used vehicle market, and accelerate the company’s overall transformation to a digital marketplace company. 

“This acquisition will advance our clear growth strategy in the dealer-to-dealer segment and accelerate the positive momentum we’ve sustained over the past several quarters,” said Peter Kelly, CEO of KAR Global. “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. 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.”

The company’s online platform enables dealers to conveniently wholesale trade-ins and aged frontline units directly from their lot and quickly source new inventory from anywhere.  

“We started CARWAVE to provide dealers with a low cost, low stress and hassle-free alternative to physical wholesale auctions,” said John Lauer, president of CARWAVE. “KAR has truly embraced these core principles, and their progressive approach continues to lead the digital transformation of our industry. Our two organizations share a passion for innovation, a dedication to customer service and a commitment to making wholesale easy. And we look forward to combining our great networks of trusted dealers and delivering the best, most convenient and profitable wholesale solutions possible.”

The purchase price of the acquisition is $450 million and the transaction is expected to close prior to year-end pending the requisite legal and regulatory approvals. Winston & Strawn LLP is serving as legal advisor to KAR Global. Latham & Watkins LLP is serving as legal advisor to CARWAVE.

For more information and the latest KAR Global news, go to www.karglobal.com and follow us on Twitter @KARspeaks.

You May Also Like

DAS Technology Unveils New CDXP Features at NADA 2023

The platform offers new Google communication integration capabilities and expanded inventory merchandising capabilities.

Leading Customer Data and Experience Platform (CDXP) company unveils new technology features leveraging data and integrations to enhance customer experience and boost CSI and sales

DAS Technology, a leading customer data and experience platform company leveraged by over 7,800 retailers, unveiled new technology showcasing the company’s expanded Customer Data and Experience Platform (CDXP) solutions. The new solutions were shown at DAS Technology’s booth at the National Automobile Dealers Association (NADA) Show Jan. 26-29 in Dallas, Texas.

Cox Automotive Teams with Roku to Measure how TV Streaming Impacts the Consumer Automotive Journey 

New partnership seeks to make leading automotive dataset available for marketers to connect ad exposure to every stage of the shopping journey for the first time

automotiveMastermind Joins the Reynolds Certified Interface Program

automotiveMastermind (aM) has signed a contract to join the Reynolds Certified Interface Program.

Cox Automotive’s Upside Expands, Delivers Over Four Million Dollars in Profit Share Back to Clients

Cox Automotive remains confident in how this new way to wholesale can deliver profitability to sellers in any market—and the data has proven that.

Reynolds Acquires American Guardian Warranty Services

The Reynolds and Reynolds Company expands its portfolio by adding F&I products and services for automotive, RV, powersports, marine, and commercial trucking markets

Other Posts

Outgoing 2022 NADA Chairman Mike Alford Underscores Dealer Commitment to Evolving Business Model

In his final remarks as NADA Chairman, Mike Alford highlighted the evolving auto retail business model and how dealers and auto manufacturers “are connected by the desire to provide an unrivaled customer experience.”

NAAA Foundation Donates $75,000 to NADA Workforce Initiative

The NAAA Foundation donated $75,000 to the National Automobile Dealers Association (NADA) Foundation’s Workforce Initiative, which promotes the value of dealerships roles and access to educational resources.

NADA and Tekion Announce First-Ever Tied Winners in 6th Annual Women Driving Auto Retail Video Contest

The National Automobile Dealers Association (NADA) and sponsor Tekion named Leslie Jefferson and Alicia Rivera as the winners of the 6th Annual Women Driving Auto Retail Contest at NADA Show 2023.

New Jersey Dealer Mike DeSilva to Serve as AIADA’s 2023 Chairman

DeSilva, who is the co-owner of Liberty Auto Group in northern New Jersey, accepted the chairman’s gavel during an AIADA event in Dallas, Texas on Friday night.