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Transaction to Advance Digital Strategy and Growth through Expanded Inventory, Data and Customer Base
CARMEL, Ind., Dec. 4, 2023 /PRNewswire/ -- OPENLANE, Inc. (NYSE:KAR), a leading operator of digital marketplaces for wholesale used vehicles, has signed a definitive agreement to acquire the Manheim Canada business ("Manheim Canada") from Cox Automotive, subject to certain customary closing conditions. The proposed acquisition advances OPENLANE's digital strategy by adding Manheim Canada inventory, buyers, sellers and corresponding data to the OPENLANE Canada digital marketplace launched earlier this year. Valued at $130 million CAD or approximately $95 million USD, the transaction includes the Manheim Montreal facility and auction sales, operations and select staff across Manheim Canada, which intends to exit Canada.
"OPENLANE's vision is to build the world's greatest digital marketplaces for used vehicles — and this acquisition helps advance our digital strategy," said Peter Kelly, CEO of OPENLANE. "Building on the momentum of our combined, single OPENLANE Canada digital marketplace launch in June, this transaction will help accelerate commercial and dealer growth, and deliver an improved customer experience. For buyers — more inventory means more choice and a simplified way to find the very best vehicles for their lots. For sellers — instantly accessing OPENLANE's broad buyer-base means achieving the best market results possible on every sale. And by deepening our data set, we can generate enhanced vehicle recommendations, pricing information and other insights to help customers make better informed wholesale decisions."
Under the agreement, OPENLANE will assume Manheim Canada's customer relationships. After the transaction closes, OPENLANE will integrate the Manheim Canada business into the existing OPENLANE Canada business, combining all inventory within the OPENLANE digital marketplace. The company will also consolidate operations at nearby locations, onboarding select staff to ensure a seamless transition for customers and ensuring continued access to related services and offerings including inspections, reconditioning, transport and logistics.
"OPENLANE Canada is committed to fulfilling our purpose, to make wholesale easy so our customers can be more successful," said Trevor Henderson, chief operating officer of OPENLANE Canada. "We are excited to introduce these valuable customers to our unique combination of innovative technology and personalized, local support. From AI-enhanced inspections, to flexible sale formats, to fast, reliable payment, ownership and reconditioning services, we're committed to removing the hassles of wholesale. The entire OPENLANE team is eager to welcome our new commercial and dealer customers, and help them benefit from all OPENLANE has to offer."
The transaction also includes the purchase of Manheim's Montreal facility but excludes its other Canadian facilities. In Montreal, OPENLANE intends to transition its operations, people and inventory from its current location to the acquired Montreal facility. In all other locations, substantially all of the customers and business operations will be transitioned to nearby OPENLANE Canada vehicle logistics centres. Upon closing, OPENLANE will commence a process to market and sell its existing Montreal facility and anticipates substantial proceeds that would fund a significant portion of the acquisition. All other OPENLANE vehicle logistics centre locations and operations will remain the same.
Conference Call
An investor and analyst conference call and webcast to discuss how the proposed acquisition furthers OPENLANE's digital strategy has been scheduled for Monday, December 4, 2023, at 5:00 p.m. ET. The call will be broadcast via live webcast on the investor relations page of ir.corporate.openlane.com and will be available for playback after the call. To access the call via phone, please dial 833.634.2155 and ask to join the OPENLANE, Inc. call at least 10 minutes prior to the call.
Posted In: KAR
