OPENLANE, Inc - KAR STOCK NEWS

Carvana (NYSE: CVNA) has announced the acquisition of ADESA's U.S. auction business for $2.2B, enhancing its operational capabilities. This acquisition includes 56 U.S. locations, spanning 6.5 million square feet. Carvana aims to utilize this acquisition to improve customer experiences and achieve sustainable efficiencies, positioning itself for growth despite recent industry slowdowns. The deal is expected to bolster Carvana's strategy in the automotive sector, enabling a seamless transition for existing customers under the leadership of ADESA President John Hammer.

KAR Global (NYSE: KAR) has completed the sale of its ADESA U.S. physical auction business to Carvana, enhancing its digital marketplace strategy. The transaction, initially announced in February, includes 56 auction sites and the ADESA.com marketplace. CEO Peter Kelly emphasized the shift towards digital solutions and the simplification of the business model. KAR will retain its OPENLANE platform and continue operations in Canada and Europe. An analyst day update call is expected in June to discuss strategic projections.

KAR Auction Services (NYSE: KAR) reported Q1 2022 financial results, highlighting a total revenue of $369.4 million, a slight decline from $369.8 million in Q1 2021. The company expects to finalize the sale of its ADESA U.S. physical auction business to Carvana, which will significantly reduce its debt. Gross profit per vehicle sold increased to $255, and digital dealer-to-dealer volumes grew by 31%. However, the net loss from continuing operations was $8.4 million, or $(0.16) per diluted share. The board also authorized a $200 million increase in its share repurchase program.

KAR Global (NYSE: KAR) will release its first quarter 2022 financial results after market close on May 3, 2022. The company will hold an earnings conference call on May 4, 2022, at 8:30 a.m. ET, hosted by CEO Peter Kelly and CFO Eric Loughmiller. Interested parties can access the call by dialing 1-844-778-4145 or through a live webcast on the investor relations section of karglobal.com. The archive of the webcast will be available thereafter for a limited time.

Carvana (NYSE: CVNA) has signed a definitive agreement to acquire ADESA's U.S. physical auction business from KAR Global (NYSE: KAR) for $2.2 billion in cash. This acquisition is set to significantly enhance Carvana's infrastructure, enabling the company to expand its annual production capacity to over 3 million vehicles. Once fully operational, 78% of the U.S. population will be within 100 miles of a Carvana inspection and reconditioning center. ADESA U.S. contributed over $800 million in revenue and $100 million in EBITDA in 2021.

KAR Global (NYSE: KAR) has finalized a $2.2 billion all-cash agreement for Carvana to acquire its ADESA U.S. physical auction business. This transaction encompasses all sales, operations, and staff at 56 auction centers and grants Carvana exclusive use of the ADESA.com marketplace in the U.S. With this move, KAR aims to streamline its focus on digital marketplaces and reduce corporate debt. Although expected to reduce Adjusted EBITDA by $100 million annually, KAR plans significant workforce reductions and anticipates higher growth and margins in their digital operations.

KAR Auction Services (NYSE: KAR) reported its Q4 2021 financial results, showing a revenue increase of 4% to $549.4 million compared to Q4 2020. Net income was $5.1 million, with a loss of $(0.04) per diluted share, improved from a net loss of $17.1 million in Q4 2020. Adjusted EBITDA surged 45% to $97.9 million. Full-year revenue for 2021 also grew by 3% to $2.25 billion, and net income rose significantly to $66.5 million. The company is focused on enhancing gross profit and reducing costs amid a digital transformation strategy for better growth and profitability moving forward.

KAR Global (NYSE: KAR) will announce its fourth quarter and full year 2021 financial results after market close on February 16, 2022. An earnings conference call hosted by CEO Peter Kelly and CFO Eric Loughmiller is scheduled for February 17, 2022, at 8:30 a.m. ET. The call can be accessed via phone or through a live webcast on the investor relations section of karglobal.com. The webcast archive will be available for a limited time after the call.

KAR Auction Services, d/b/a KAR Global (NYSE: KAR), has licensed its Privacy Pam™ training program to the National Auto Auction Association (NAAA) for use by its member auctions. This initiative aims to enhance data security and privacy practices across the industry, benefiting nearly 10,000 employees. The program, developed in 2020, includes updated curricula addressing emerging threats in data privacy. CEO Tricia Heon emphasized the importance of protecting customer information, while KAR’s Chief Privacy Officer, Michelle Bray, highlighted ongoing investments in data protection capabilities.