Carmel, Indiana -- October 3, 2017 -- KAR Auction Services has acquired the remaining interest in Nth Gen Software ("TradeRev"), a mobile app and desktop solution that facilitates real-time dealer-to-dealer vehicle auctions.
KAR purchased a 50 percent stake in TradeRev in 2014 and acquired the remaining interest recently for $50 million in cash and an additional $75 million over the next four years contingent on certain terms and conditions including TradeRev performance.
TradeRev brings industry-leading mobile and digital technology to KAR's portfolio of 250 whole cars and salvage auctions, floor-plan financing solutions, and other ancillary and related 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, tablet or desktop. Winning TradeRev bidders can complete the entire transaction within the app, including optional inspection, title and arbitration services and financing and transportation through KAR's AFC and CarsArrive brands.
Becca Polak will be leading TradeRev. Polak has served as KAR's executive vice president, general counsel and corporate secretary for the last ten years. As President of TradeRev, she will focus on diversifying TradeRev's product and service offerings and expanding TradeRev's market footprint. Polak will also be promoted to the position of Chief Legal Officer and Secretary for KAR where she will retain oversight responsibility for KAR's enterprise legal and corporate communications functions.
"I am thrilled for KAR, TradeRev and all of our employees," said Polak. "Today marks a significant milestone in the digitization of vehicle remarketing and the beginning of a bright new era of innovation for our company. I am honoured and humbled to lead TradeRev and this incredible team into the future."
For more information, please visit karauctionservices.com.