KAR Auction Services to augment UK services through new acquisition
KAR Auction Services, the US parent of ADESA Remarketing, is to acquire Belgium-based online auction company CarsOnTheWeb (COTW) in a move that will significantly extend its European footprint and bring new services to the UK.
Expected to close in the first quarter of 2019, the planned acquisition, which is subject to regulatory approval, is valued at approximately €91m in cash and up to an additional €65m over a specified period of time contingent on certain terms, conditions and COTW performance.
COTW serves the wholesale vehicle sector in continental Europe where it connects OEMs, fleet owners, wholesalers and dealers. With sales operations in Belgium, France, Germany, Italy, the Netherlands and Spain, COTW provides sellers in these countries and buyers in more than 50 countries with a wide range of vehicle auction, transportation and related support services.
The acquisition will advance KAR’s international strategy and extend its growing North American and UK-based portfolio of physical, online and digital auction marketplaces.
KAR also said it intends to leverage COTW to deploy the company’s technology, data analytics and other ancillary service capabilities across Europe.
“Cross-border transactions are particularly complex for European remarketers,” said Benjamin Skuy, KAR’s executive vice president for international markets and strategic initiatives.
“CarsOnTheWeb’s unique platform and logistics solutions directly address these challenges and have the power to deliver seamless, convenient and connected services on a global scale. By leveraging KAR’s broad portfolio of technology, strong industry relationships and existing ADESA UK operations, we can enhance these offerings and develop new opportunities to serve wholesale customers.”