KAR Auction Services Inc. recently announced that they have prepared and agreed to purchase a European internet car auction company for around $103 million.
KAR already operates more than 250 brick-and-mortar auctions in North America. The purchase of Belgium-based CarsOnTheWeb would advance its strategy of expanding internationally and positioning itself to continue to prosper as online auctions gain popularity.
“CarsOnTheWeb is a leading cross-border automotive remarketing platform in continental Europe, and their addition to our family of companies will instantly anchor KAR in the international marketplace,” KAR CEO Jim Hallett said in a written statement.
Under the deal, KAR would pay $103 million up front and could pay as much as $73 million more over time, depending on how CarsOnTheWeb performs and other factors.
COTW operates in 19 languages and has sales operations in Belgium, France, Germany, Italy, the Netherlands and Spain.
“Cross-border transactions are particularly complex for European remarketers,” Benjamin Skuy, KAR’s executive vice president for international markets and strategic initiatives, said in a written statement. “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.”
KAR said it intends to retain COTW’s locations, employees and key executives, including CEO Johan Meyssen.
KAR is one of the largest players in the North American used-car auction business and salvage-auction business. It operates both physical and online auctions domestically and overseas, and also provides a range of ancillary services, including providing floor-plan financing to dealers.
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