ADESA, a business unit of KAR Auction Services, announced that its subsidiary, AutoVIN, has signed a definitive agreement to acquire the vehicle inspection business from DataScan Field Services, a JM Family Enterprises company and one of the largest automotive floorplan inventory verification and off-lease vehicle inspection companies in North America. DataScan utilizes web-based technology to perform vehicle inspection services for major auto manufacturers, financial institutions, leasing companies and warranty companies.
AutoVIN provides professional field information services, specializing in vehicle condition reporting, inventory verification auditing, compliance auditing and facility inspections. The company's highly trained, company-employed field representatives electronically record all information right in the field. This minimizes risk for the customer by reducing errors and omissions and also increases efficiencies by decreasing the amount of time to process data.
"AutoVIN's field inspectors provide peace of mind for our clients who want a professional, competent experience for their customers and business partners. And our geographic reach ensures their portfolios are inspected and processed in a timely manner," said Stéphane St-Hilaire, president and CEO, ADESA. "This acquisition will provide an unmatched offering by combining DataScan's innovative technology for capturing vehicle information and communicating customer data with AutoVIN's vehicle inspection expertise and ADESA's renowned customer service."
"This transaction with AutoVIN presents the best possible solution for our clients and our associates," said Brent Sergot, president, DataScan. "With their reputation for delivering exceptional service to their clients and for treating their employees with the same level of dedication, we knew the best home for the business was with AutoVIN. This is a strategic business decision for DataScan to now be singularly focused on the wholesale finance industry in order to continue to build upon our position as the leading provider of floorplan accounting software and inventory verification solutions. We are dedicated to growing our market share, finding ways to continually do it better and positioning our core businesses to operate at peak performance."
The two combined companies will serve all major vehicle leasing companies and auto lenders with inspection needs. The transaction's closing is subject to conditions; however, the closing is expected to occur within the next 60 days.
