A little more than a month after opening ADESA Chicago, KAR Auction Services made another big move in the Windy City on Wednesday.
KAR announced it has acquired Chicago-based DRIVIN in a $43 million stock purchase transaction.
The company, whose official name is CarCoTechnologies and does business as DRIVIN, was founded in 2015 by Groupon co-founders Brad Keywell and Eric Lefkofsky, along with Kayne Grau and Justin Mahlik.
Grau is chief executive officer of DRIVIN and will continue as president of DRIVIN at KAR and Mahlik will continue in his role as chief operating officer. The company will remain at its Chicago headquarters and retain key members of its leadership team.
“Translating the power of data into actionable insights is a strategic imperative for KAR. It’s what our customers need and expect,” KAR chairman and CEO Jim Hallett said in a news release. “DRIVIN has quickly earned the reputation as a disruptor and its robust data science capabilities are highly sought after in the industry. KAR and DRIVIN will help accelerate the delivery of innovative new solutions to our diverse customers.”
Grau said:” We’re thrilled to be part of KAR and a culture that shares our entrepreneurial spirit. With data from more than 40 million transactions and ancillary services performed each year, KAR’s platform provides a unique opportunity to scale, syndicate and evolve DRIVIN’s capabilities. We look forward to powering the future of automotive remarketing for KAR’s businesses and customers around the globe.”