CHICAGO, April 19 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)