KAR Acquires Remaining Interest in TradeRev Mobile App Auction Platform
NYSE-traded KAR Auction Services has acquired the remaining interest in Toronto’s TradeRev, a mobile app and desktop solution that facilitates real-time dealer-to-dealer vehicle auctions.
KAR purchased a 50 per cent stake in TradeRev in 2014 and acquired the remaining interest today for $50 million in cash and an additional $75 million over the next four years contingent on TradeRev performance.
TradeRev brings industry-leading mobile and digital technology to KAR’s portfolio of 250 whole car and salvage auctions, floorplan financing solutions, and other ancillary auto auction services. KAR will further integrate those capabilities into TradeRev to expand its digital business and strengthen its share in the dealer-to-dealer market representing over 10 million annual transactions.
“The digital revolution in remarketing has begun, and the acquisition of TradeRev ensures that KAR will maintain its strong leadership position in the mobile app and online auction space,” said Jim Hallett, chairman and CEO of KAR.
“As a former dealer, I believe TradeRev is the most powerful and innovative mobile app for dealers on the market. By injecting TradeRev with the full force of KAR’s technology, data, financing and service offerings, we plan to accelerate growth across North America and around the globe.”
TradeRev offers dealers fast, convenient access to high-quality trade-in and commercial consignment inventory before it reaches wholesale physical auctions. The TradeRev mobile app mimics the physical auction setting, enabling dealers to launch and participate in live, one-hour auctions directly from their smartphone or desktop.
Winning TradeRev bidders can complete the entire transaction within the app, including optional inspection, title and arbitration services, and financing and transportation.
TradeRev was launched in 2009 by CEO and co-Founder Mark Endras along with co-founders Wade Chia, Jae Pak and James Tani, all of whom will retain leadership roles at TradeRev.
Endras will remain a member of the TradeRev senior leadership team, focusing on enhancing TradeRev’s in-app experience and product development pipeline, and also take on the role of Chief Innovation Officer for KAR.
“KAR has an incredible entrepreneurial culture and a proven track record of fostering disruptive innovation across their businesses,” said Endras. “By applying a start-up philosophy to KAR’s development pipeline, we’ll be able to deploy new solutions more quickly than ever before. I look forward to delivering the next generation of innovative remarketing technology, products and services to KAR’s global customer base.”
TradeRev is hiring and has approximately 200 employees across office locations in Toronto, Chicago and Carmel, Indiana, and field staff located in markets across the U.S. and Canada.
