KAR Auction Services, Inc. has acquired the remaining 50% stake in TradeRev, a mobile app and desktop solution that facilitates real-time dealer-to-dealer vehicle auctions, for $50 million in cash and an additional $75 million over the next four years contingent on certain terms and conditions, according to a company announcement.
This purchase comes three years after the company purchased its initial 50% stake in TradeRev for $30 million in cash.
"The digital revolution in remarketing has begun, and the acquisition of TradeRev ensures that KAR will maintain its strong leadership position in the mobile app and online auction space," said Jim Hallet, chairman and CEO of KAR.
TradeRev will be led by Becca Polak, who has served as KAR’s executive vice president, general counsel and corporate secretary for the last 10 years. In this new role, Polak will focus on diversifying TradeRev’s product and service offerings and expanding TradeRev’s market footprint, according to the company.
Within KAR, Polak will also be promoted to the position of chief legal officer and secretary for KAR, the company added.
TradeRev CEO and co-founder Mark Endras along with co-founders Wade Chia, Jae Pak and James Tani will retain leadership roles at TradeRev as part of the acquisition. Along with his current duties, Endras will also take on the role of chief innovation officer for KAR. In this position, he will focus on advancing KAR’s innovation agenda and establishing new KAR innovation lab centers in Toronto, Chicago, and Carmel, Ind.
Within TradeRev Endras will report to Polak and within KAR Endars will report to Tom Fisher, KAR’s chief information officer.
See all comments