KAR Global Acquires California Company
(image courtesy of KAR Global)
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowCarmel-based KAR Global (NYSE: KAR) is adding to its portfolio. The company has acquired California-based Auction Frontier, the developer of the cloud-based auction simulcast platform Velocicast.
Financial terms of the deal were not disclosed. The two companies are no strangers to each other; they partnered in 2019 to develop KAR’s ADESA Simulcast and last year to develop ADESA Simulcast+, both of which are powered by Velocicast.
“Auction Frontier has rapidly grown Velocicast to become the industry gold standard for simulcast, and we are thrilled to welcome their incredibly talented team to our organization,” KAR Global Chief Executive Officer Peter Kelly said in a news release. “And we look forward to supercharging the next generation of digital auction technology for our combined customers.”
KAR Global says Velocicast powers digital simulcast sales for more than 300 wholesale and retail auctions across North America and Australia. Auction Frontier President Scott Blatter says joining KAR Global will allow the company to “rapidly accelerate future innovation.”
KAR Global is also reporting first quarter net income of $50.9 million, up from $2.8 million during the same period last year. As of 11 a.m. Wednesday, the company’s stock price was up 16% following news of the acquisition.
You can connect to the full earnings report by clicking here.