CARMEL, IN--(Marketwired - Mar 23, 2015) - ADESA, a business unit of KAR Auction Services (NYSE: KAR), today announced that its subsidiary, AutoVIN, has signed a definitive agreement to acquire the vehicle inspection business from DataScan Field Services, a JM Family Enterprises company and one of the largest automotive floorplan inventory verification and off-lease vehicle inspection companies in North America. DataScan utilizes web-based technology to perform vehicle inspection services for major auto manufacturers, financial institutions, leasing companies and warranty companies.
AutoVIN provides professional field information services, specializing in vehicle condition reporting, inventory verification auditing, compliance auditing and facility inspections. The company's highly trained, company-employed field representatives electronically record all information right in the field. This minimizes risk for the customer by reducing errors and omissions and also increases efficiencies by decreasing the amount of time to process data.
"AutoVIN's field inspectors provide peace of mind for our clients who want a professional, competent experience for their customers and business partners. And our geographic reach ensures their portfolios are inspected and processed in a timely manner," said Stéphane St-Hilaire, president and CEO, ADESA. "This acquisition will provide an unmatched offering by combining DataScan's innovative technology for capturing vehicle information and communicating customer data with AutoVIN's vehicle inspection expertise and ADESA's renowned customer service."
"This transaction with AutoVIN presents the best possible solution for our clients and our associates," said Brent Sergot, president, DataScan. "With their reputation for delivering exceptional service to their clients and for treating their employees with the same level of dedication, we knew the best home for the business was with AutoVIN. This is a strategic business decision for DataScan to now be singularly focused on the wholesale finance industry in order to continue to build upon our position as the leading provider of floorplan accounting software and inventory verification solutions. We are dedicated to growing our market share, finding ways to continually do it better and positioning our core businesses to operate at peak performance."
The two combined companies will serve all major vehicle leasing companies and auto lenders with inspection needs. The transaction's closing is subject to conditions; however, the closing is expected to occur within the next 60 days.
About ADESA
ADESA offers a full range of auction, reconditioning, logistical and other vehicle-related services to meet the remarketing needs of both its institutional and dealer customers. The company handles virtually every stage of the used-vehicle lifecycle through its related subsidiaries of PAR North America, RDN, AutoVIN and CarsArrive. Remarketing services include a variety of activities designed to transfer used vehicles between professional sellers and buyers.
ADESA hosts weekly sales at its 65 auction locations across the United States, Canada and Mexico. The company also builds and manages online sale platforms for many major vehicle manufacturers. The company's online auction venues include ADESA LiveBlock, which simulcasts vehicles worldwide; and ADESA DealerBlock, which offers two ways to buy: bid-now sales events or buy-now pricing 24/7. ADESA is part of the KAR Auction Services family of companies. Visit ADESA.com for details.
About DataScan Technologies LLC
DataScan Technologies is a global leader in wholesale finance accounting and risk management systems and services. DataScan enables closer electronic communications between the lender and the dealer, and was the first to market dealership internet solutions for wholesale financial institutions. DataScan is a division of World Omni Financial Corp., a diversified financial services company headquartered in Deerfield Beach, Fla. World Omni operates as a subsidiary of JM Family Enterprises, Inc., a diversified automotive corporation ranked No. 23 on Forbes' list of "America's Largest Private Companies." JM Family is also ranked No. 34 by FORTUNE® as one of the "100 Best Companies to Work For," its 17thconsecutive year on the list.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and which are subject to certain risks, trends and uncertainties. In particular, statements made that are not historical facts may be forward-looking statements. Words such as "should," "may," "will," "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "contemplates" and similar expressions identify forward-looking statements. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from the results projected, expressed or implied by these forward-looking statements. Such forward-looking statements include statements regarding the proposed transaction. Factors that may cause actual results to differ materially include the risk that AutoVIN and Datascan may not be able to complete the proposed transaction, which is subject to customary closing conditions, risks that the businesses will not be integrated successfully, risks that AutoVIN may not be able to achieve the expected synergies from the transaction and risks of disruption from the transaction. Factors that could cause or contribute to such differences include those matters disclosed in KAR's Securities and Exchange Commission filings. KAR does not undertake any obligation to update any forward-looking statements.