Benzinga | Aug 23, 2021 08:46AM EDT

KAR Auction Services To Acquire CARWAVE For $450M

* KAR Auction Services Inc (NYSE:KAR) is set to acquire CARWAVE Holdings LLC, an online dealer-to-dealer marketplace, for $450 million.

* CARWAVE was founded in 2009 in California and currently serves a network of franchise and independent dealers across Arizona, California, Nevada, Oregon, and Texas.

* KAR expects the acquisition to build on its growth in the dealer-to-dealer segment, enhance its position in the wholesale used vehicle market, and accelerate the transformation to a digital marketplace company.

* The transaction is expected to close at the end of 2021.

* CARWAVE's key leadership, including co-founders John Lauer and Bill Lauer, will remain with the company after the deal.

* KAR intends to continue operating CARWAVE's Escondido, California headquarters.

* "CARWAVE has a strong, active dealer network in California -- the country's largest wholesale automotive market, as well as a growing presence in Arizona and Texas," said CEO Peter Kelly.

* KAR held $675.4 million in cash and equivalents as of June 30, 2021.

* Price Action: KAR shares closed lower by 0.88% at $16.8 on Friday.