CHICAGO (Reuters) - KAR Auction Services Inc, a provider of car auction and salvage services, said on Wednesday it would acquire DRIVIN, which aggregates automotive retail, pricing, registration and economic data to match vehicle inventory to dealer demand, for $43 million in stock.
DRIVIN, also known as CarCo Technologies Inc, was launched in 2015. Its founders include Brad Keywell and Eric Lefkofsky, the co-founders of Groupon Inc, the operator of the operator of daily deals website groupon.com.
KAR chief operating officer Don Gottwald told Reuters that the deal was timely for the company because U.S. new vehicle sales appear to have peaked following a record year in 2016 and automakers will have to contend with millions of off-lease vehicles returning to the market over the next few years.
“We believe there is an opportunity for us to better match the right dealer buyer for the right vehicle,” Gottwald said.
Reporting By Nick Carey; Editing by Chizu Nomiyama