Shares of leading operator of digital marketplaces for wholesale used vehicles KAR Auction Services Inc. (NYSE: KAR) were up 8.13% to $15.69 in the after-market trades. Tuesday’s session closed at $14.51, a loss of 2.62% for KAR stock.
KAR stock volume remained higher at 5.33 million shares from the daily average of 2.36 million shares over the past 50 days. Following the company’s quarterly results and the announcement of an acquisition agreement, KAR stock shot up.
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What was the acquisition for?
Known by its trade name KAR Global, KAR Auction provides innovative, technology-driven remarketing solutions to sellers and buyers in the wholesale used vehicle industry. With KAR’s platform, users can buy, finance, distribute and maintain a whole car process including finance, logistics, or sell ancillary and related services. KAR handled the sale of nearly 3.1 million cars in 2020, valued at $40 billion.
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KAR’s integrated physical, electronic, and mobile marketplaces substantially improve the quality of life for customers in about 75 countries by reducing risk, improving transparency, and streamlining transactions. KAR Global has employees in the United States, Canada, Mexico, Uruguay, the United Kingdom, and Europe, and has its headquarters in Carmel, Indiana.
KAR announced yesterday that it had acquired Auction Frontier, the company that created industry-leading Velocicast auction simulcast solution.
ADESA Simulcast and Simulcast+ technologies powered by Velocicast are key to KAR’s technology portfolio. The acquisition will help KAR with future developments to speed up, simplify and deliver real-time analytic communication on a broad scale.
How it will work?
Collaboration of two companies has already shown its worth in 2020 when KAR Auction (KAR) partnered with Auction Frontier for the development of ADESA Simulcast+, the industry’s first fully automatic live-auction platform. And the combined company will be able to provide their customers with the next generation of digital auction technology.