Carvana, an online used car marketplace, is to acquire physical auction business Adesa from KAR Global for $2.2bn in cash, a report by Coverager has revealed.
Founded in 2012, Carvana allows users to shop, finance, and insure their cars via the company’s mobile or web app. Those vehicles can either be picked up at one of its 30 multi-story car vending machines or delivered directly to a customer’s home. ADESA provides wholesale vehicle auction solutions in the US, facilitating over one million transactions last year.
According to Carvana, ADESA’s 56 sites are highly complementary, and combining them extends the collective reach of the two businesses. Further, 78% of the US population lives within 100 miles of either an Adesa or existing Carvana inspection and reconditioning centre, meaning customers will have access to more vehicles with faster delivery times.
Carvana will continue to operate ADESA’s existing wholesale auction business and related services under the ADESA brand. ADESA US president John Hammer additional senior and executive leadership and teams will transition to Carvana after the deal is closed.
Copyright © 2022 FinTech Global