Carvana has agreed to purchase KAR Global's ADESA physical auction business in the U.S. for $2.2 billion to enhance its vehicle sourcing and logistics capabilities.

Target Information

KAR Global has entered into a definitive agreement to divest its ADESA physical auction business in the United States to Carvana for $2.2 billion. This all-cash transaction encompasses the complete auction sales, operations, and workforce at 56 ADESA vehicle logistics centers located across the U.S. Furthermore, it grants Carvana exclusive access to the ADESA.com marketplace within the country.

ADESA has established itself as a significant player in the vehicle auction industry, connecting dealers with a robust platform for buying and selling vehicles. This business unit's sale marks a pivotal strategic shift for KAR Global, aligning with its broader objectives to streamline operations and focus on core business segments.

Industry Overview

The U.S. vehicle auction industry has experienced substantial transformations in recent years, driven by advancements in technology and shifts in consumer behavior. The market for online vehicle auctions has flourished, with p