KAR Global’s blockbuster sale of its ADESA U.S. auto auction business to Carvana has officially closed, KAR said Tuesday morning.
The sale includes include all auction sales, operations and staff at 56 ADESA U.S. vehicle logistics centers in the U.S.
Carvana will also now operate the ADESA.com marketplace in U.S.
The deal was first announced in February.
“We believe the future is digital, and the channel shift towards digital across our industry is gaining momentum. KAR is now better positioned than ever to lead this evolution and capture the broad opportunities ahead,” KAR chief executive officer Peter Kelly said in a news release.
“Our new, more simplified business model allows us to focus our strategy, energy and investments on developing and deploying the digital solutions our customers want, need and value the most,” Kelly said. “We believe expanding our capabilities and the portfolio of services we provide will generate the greatest benefits for those customers, increase our market share and, ultimately, deliver the greatest value to our shareholders.”
KAR will continue to operate its OPENLANE platform, as well as its digital dealer-to-dealer businesses. The latter includes BacklotCars and CARWAVE in the U.S., as well as TradeRev in Canada.
The ADESA Canada, ADESA UK and ADESA Europe businesses, along with KAR’s affiliated inspections, transportation and other services brands like AFC, remain part of KAR.
The company will provide more details on its strategy and projections in an analyst day update call, which it anticipates happening next month.
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