KAR Auction Services Inc. has acquired full ownership of the Canada-based TradeRev technology that allows dealers to electronically bid on and purchase used vehicles before they reach physical auctions.
KAR, which owns 250 whole and salvage vehicle auctions under its ADESA and Insurance Auto Auction units, had purchased half of TradeRev's parent company, Nth Generation Software, in 2014. It bought the remaining half Tuesday for $50 million in cash and an additional $75 million over the next four years contingent on TradeRev performance.
"The acquisition of TradeRev ensures that KAR will maintain its strong leadership position in the mobile app and online auction space," KAR CEO Jim Hallett said in a statement. "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."