KAR acquires DRIVIN to bolster data analytic capabilities and strengthen remarketing platform

Apr 19, 2017   Technology

Addition of DRIVIN’s innovative products, technology and talent highly complementary to the company’s broad data service offerings.

KAR Auction Services has announced the acquisition of DRIVIN. The $43 million stock purchase transaction adds innovative data analytical capabilities to KAR's global portfolio of automotive remarketing solutions. The combination will focus on meeting the increasing market demand for data-driven tools and decision-support among wholesale used-vehicle sellers and buyers. By integrating the companies' unique data sets and capabilities, KAR will expand its product offerings to help customers reduce risk and improve the speed, predictability and outcomes of their transactions.

"Translating the power of data into actionable insights is a strategic imperative for KAR. It's what our customers need and expect," said Jim Hallett, Chairman and CEO of KAR. "DRIVIN has quickly earned the reputation as a disruptor and its robust data science capabilities are highly sought after in the industry. KAR and DRIVIN will help accelerate the delivery of innovative new solutions to our diverse customers."

DRIVIN aggregates automotive retail, pricing, registration and other market and economic data from a variety of public and proprietary sources. The insights generated from that data are deployed through predictive pricing, inventory management and vehicle matching tools that help customers buy, sell and source vehicles more intelligently and efficiently. KAR plans to build on this foundation and leverage DRIVIN's infrastructure and intuitive user interface to deploy its own organically developed products and services as well.

"KAR has built strong data science solutions and analytical services teams, and we're developing integrated economic insights and predictive-model service offerings for our customers," said Don Gottwald, Chief Operating Officer of KAR. "The addition of DRIVIN's innovative capabilities will enhance the potential reach and impact of our unique platform."

Headquartered in one of Chicago's innovation and technology incubators, DRIVIN was launched in 2015 by Groupon Co-Founders Brad Keywell and Eric Lefkofsky, DRIVIN CEO Kayne Grau and DRIVIN Chief Operating Officer Justin Mahlik. Both Grau and Mahlik will continue to lead DRIVIN at KAR as President and COO, respectively. The company will also retain the Chicago location and key members of the DRIVIN leadership team. Both companies are committed to creating a direct channel of communication, collaboration and innovation between their Chicago and Indianapolis locations.

"We're thrilled to be part of KAR and a culture that shares our entrepreneurial spirit," said Grau. "With data from more than 40 million transactions and ancillary services performed each year, KAR's platform provides a unique opportunity to scale, syndicate and evolve DRIVIN's capabilities. We look forward to powering the future of automotive remarketing for KAR's businesses and customers around the globe."

DRIVIN joins the already well-established presence of KAR subsidiaries in Chicago, one of the nation's largest and most progressive automotive markets. Chicago is home to the headquarters of Insurance Auto Auctions, KAR's salvage auction business unit, as well as the newly opened ADESA Chicago auction in Hoffman Estates. With the addition of DRIVIN, KAR will have nearly 600 employees in the Chicago market across eight different operating locations. KAR is focused on simplifying wholesale used-vehicle transactions and providing the best physical, online and mobile auction venues for customers worldwide.

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