CARMEL, Ind. – KAR Auction Services, Inc. announced Aug. 5 that its subsidiary ADESA has paid about U$30 million for a 50 percent stake in Toronto-based Nth Gen Software Inc. and its online vehicle remarketing system, TradeRev.
ADESA also announced that it has entered into a joint marketing agreement with TradeRev to help it expand in the dealer-to-dealer online market in North America.
ADESA said will be the exclusive supplier of certain products and services to TradeRev's customers. ADESA did not give details re the products and services.
ADESA will also leverage its 65 auction locations across North America and the company's strong online auction presence and dealer network to support TradeRev's dealer offerings.
TradeRev offers dealers an online automotive remarketing system that lets dealers participate in real-time vehicle auctions at any time from their mobile devices or desktop.
Registered dealers list cars in a TradeRev auction and participating buyers get an instant notification of new vehicles as they are posted.
This system also has a variety of sales tools, as well as analytics for quick and accurate vehicle appraisals.
“TradeRev allows dealers to obtain instant bids while the retail customer is sitting in the showroom by providing a private, customized network for buyers and sellers that quickly and efficiently moves fresh trades,” said ADESA president/CEO Stéphane St-Hilaire.
“We acknowledge that dealers are using technology more and more to buy and sell cars,” said St-Hilaire. “In that regard, TradeRev is a natural evolution in the dealer-to-dealer space which includes approximately 20-22 million transactions a year.”
“We have long admired ADESA's ability to deliver simple, consistent solutions in the used-vehicle market and the company's capability to provide a broad network of users across Canada and the United States,” said Mark Endras, the president, founder and creator of TradeRev.
“TradeRev has always believed in providing dealers and wholesalers cutting-edge technology to enable them to create new efficiencies within their operations. Partnering with ADESA will allow us to share our innovative TradeRev technology with even more customers across North America.”
Founded in 2009, TradeRev currently operates throughout Canada and in some U.S. states.
Endras and the company's management team own the other 50 per cent interest in TradeRev.