KAR Global (NYSE: KAR), an operator of digital marketplaces for wholesale used vehicles, has completed the acquisition of CARWAVE Holdings LLC (CARWAVE) for $450 million in cash, the company reported in a news release Oct. 14.
The acquisition builds on KAR’s fast growth in the dealer-to-dealer segment, accelerates profitability, positions the company to achieve its long-term goals, and enhances the company’s differentiated combination of digital marketplaces and physical network.
“This acquisition adds a leading digital platform on the West Coast to our dealer-to-dealer segment — solidifying our competitive position and improving profitability across our dealer-to-dealer offerings,” said Peter Kelly, CEO of KAR Global. “With the addition of CARWAVE to our successful digital marketplaces — including ADESA and BacklotCars — as well as our broad network of vehicle logistics centers, we are able to meet the needs of dealers in any market at any time.”
CARWAVE was founded in 2009 in California and serves a broad network of franchise and independent dealers across California, Arizona, Nevada, Oregon and Texas. The online platform enables dealers to conveniently wholesale trade-ins and aged frontline units directly from their lot and quickly source new inventory from anywhere.
John Lauer, president of CARWAVE, said in the release, “With the combination of our networks and dedication to superior customer service and outcomes, our trusted dealers are the real winners here — they’ll have expanded access to the top low-cost, low-stress and hassle-free used vehicle digital marketplaces.”
Key CARWAVE leadership, including co-founders John Lauer and Bill Lauer, will remain with the company. Although the companies have started integrating, there are no immediate changes to either the company’s product offerings, pricing, or customer agreements.