The Car and Truck Fleet and Leasing Management Magazine


August 15, 2011

CARMEL, IN – KAR Auction Services Inc. announced in a news release that its subsidiary, ADESA, signed an agreement to acquire the online, B2B remarketing company OPENLANE, Inc. Peter Kelly, OPENLANE’s CEO, will report directly to KAR’s CEO Jim Hallett, according to the news release from KAR.

KAR is acquiring OPENLANE for $210 million in cash, plus an increase for excess cash on OPENLANE’s balance sheet at closing. KAR stated it expects to finance the transaction with available cash and proceeds from its revolving credit facility.

In 2011, KAR stated it expects OPENLANE to generate approximately $100 million in revenue and sell more than 300,000 vehicles to dealers through its online auction services platform.

“OPENLANE is a natural fit for the KAR family of companies as it extends our online product offerings, provides a complementary customer base and adds talented members to our management team,” said KAR CEO Jim Hallett. “Sellers and purchasers of vehicles continue to increase their use of online remarketing platforms, and we believe that enhancing our existing suite of online services and products will further support KAR’s objective of expanding our addressable market to capture transactions that currently take place outside the traditional wholesale auction channel. This combination will allow ADESA to broaden its comprehensive end-to-end solutions for the vehicle remarketing industry and will provide opportunities for our sister companies, Insurance Auto Auctions and AFC.”

KAR said it expects OPENLANE’s pro forma Adjusted EBITDA in 2011 to be approximately $13 million. KAR added that it anticipates OPENLANE will contribute $20 to $25 million of Adjusted EBITDA in 2012.

“I consider this a great combination that will significantly benefit our customers and the industry,” said OPENLANE’s Peter Kelly. “Joining KAR will provide OPENLANE with the resources to accelerate the execution of our strategy and to deliver innovative remarketing solutions to the industry. I am looking forward to working with Jim and joining the KAR management team.”

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