KAR Auction Services, Inc. has reached a definitive agreement to acquire CarsOnTheWeb (COTW), an online auction company serving the wholesale vehicle sector in Continental Europe, according to a company announcement.
The acquisition is valued at approximately $177 million (156 million euro). Roughly $103 million will be paid up front in cash while the remaining will be paid over a still-to-be-determined period of time.
The companies expect to close the transaction in the first quarter of 2019.
COTW customers include OEMs, fleet owners, wholesalers, and dealers. KAR noted that the addition of COTW to the KAR family will advance its international strategy and extend its North American and UK-based portfolio.
KAR will leverage COTW to deploy its technology, data analytics, and other ancillary service capabilities across Europe, the company added.
KAR intends to keep all of COTW’s current operating locations and key leadership and management members. COTW CEO, Johan Meyssen will remain at the company after the acquisition.