KAR Finalizes Acquisition of Europe-Based CarsOnTheWeb
February 1, 2019
KAR Auction Services, Inc. (NYSE: KAR), a global automotive remarketing and technology services company, announced the completion of its acquisition of Belgium-based CarsOnTheWeb (COTW). The acquisition advances KAR’s international strategy and extends its North American and U.K.-based portfolio to Continental Europe. COTW provides a robust online wholesale vehicle auction marketplace that seamlessly connects OEMs, fleet owners, wholesalers and dealers in more than 50 countries.
“Now part of the KAR family, CarsOnTheWeb will help fuel our continued international growth with the power to deliver innovative, digitally connected services to our global customers,” said Benjamin Skuy, KAR’s executive vice president for international markets and strategic initiatives. “CarsOnTheWeb is already the leading cross-border automotive remarketing platform in Continental Europe. And together with KAR’s technology, data, ancillary service capabilities and strong industry relationships, we will lead and accelerate the evolution of the European marketplace.”
With sales operations in Belgium, France, Germany, Italy, the Netherlands and Spain, COTW provides sellers in these countries and buyers across Europe with a wide range of vehicle auction, transportation and related support services. COTW provides comprehensive, VAT-compliant payment, document transfer and post-sale processes supporting the 97 percent of customer transactions that involve cross-border sales.
COTW will operate as a wholly-owned subsidiary of KAR and will retain COTW’s current operating locations, employees and key COTW leadership and management team members. The transaction is valued at approximately 91 million euros in cash and up to an additional 65 million euros over a specified period contingent on certain terms, conditions and COTW performance.