KAR Auction Services Inc., a global automotive remarketing and technology services provider, has successfully completed its previously announced separation of IAA, Inc. IAA is now an independent public company, trading on the New York Stock Exchange under the ticker symbol IAA.
In early 2018, KAR announced the proposed separation with the goals of increasing shareholder value and allowing each company greater flexibility to accelerate its distinct strategic priorities. KAR will continue to focus on its auction marketplaces and has made meaningful investments and acquisitions to bolster its digital, data analytical and technology capabilities while expanding the company’s international footprint.
KAR will continue to operate its physical, online and digital whole car auction marketplaces and offer a broad scope of ancillary and related services, including dealer floorplan financing, logistics, inspections and fleet management solutions. The company also maintains a leadership position in the use of data and technology to deliver clear, actionable insights to customers on pricing, matching supply and demand and inventory optimization. In 2018, KAR generated approximately $2.4 billion of revenue. It is well-positioned with attractive opportunities for enhanced growth and margins around the globe.
IAA will operate the pre-separation salvage auction businesses of KAR, primarily comprised of Insurance Auto Auctions, Inc. in the U.S., Impact Auto Auctions Ltd. in Canada and HBC Vehicle Services Limited in the United Kingdom. Through those businesses, IAA has been a leader in total loss claim solutions and damaged and salvage vehicle auctions in North America and the United Kingdom. In 2018, Insurance Auto Auctions, Inc. generated approximately $1.3 billion of revenue.
Under the terms of the spin-off, KAR shareholders retained their KAR shares and received one IAA share for every KAR share held as of 5:00 p.m. EDT on June 18, 2019, the record date for the distribution.
Published in the August 2019 Edition
