KAR Auction Services, Inc., a global automotive remarketing and technology services company, has reached a definitive agreement to acquire Belgium-based CarsOnTheWeb (COTW).
The potential transaction is valued at approximately 91 million euros in cash and up to an additional 65 million euros over a specified period of time contingent on certain terms, conditions and COTW performance. The companies expect to close the transaction the first quarter of 2019 subject to certain required regulatory approvals.
COTW is an online auction company serving the wholesale vehicle sector in Continental Europe that seamlessly connects OEMs, fleet owners, wholesalers and dealers. When completed, the acquisition will advance KAR’s international strategy and extend its strong North American and UK-based portfolio of physical, online and digital auction marketplaces. KAR also intends to leverage COTW to deploy the company’s technology, data analytics and other ancillary service capabilities across Europe.
With sales operations in Belgium, France, Germany, Italy, the Netherlands and Spain, COTW provides sellers in these countries and buyers in over 50 countries with a wide range of vehicle auction, transportation and related support services. The company’s online and mobile tools are available in 19 languages and deliver real-time search, bid, payment and logistics scheduling functionality. COTW also provides comprehensive, VAT-compliant payment, document transfer and post-sale processes supporting the 97 percent of customer transactions that involve cross-border sales.
After the transaction closes, KAR intends to retain COTW’s current operating locations, employees and key COTW leadership and management team members. This includes Johan Meyssen, chief executive officer of COTW, who will report directly to Benjamin Skuy.
Published in the January 2019 Edition