CARMEL, Ind. — KAR Auction Services will acquire the Chicago-based company that operates as DRIVN, a B2B data provider that helps used-car dealers set prices based on their local marketplace, for $43 million.
The acquisition of CarCo Technologies Inc. will be completed as a stock purchase transaction. The company was founded in 2015 by Groupon co-founders Brad Keywell and Eric Lefkofsky, along with Kayne Grau and Justin Mahlik.
"KAR has built strong data science solutions and analytical services teams, and we’re developing integrated economic insights and predictive-model service offerings for our customers," said KAR COO Don Gottwald. "The addition of DRIVIN's innovative capabilities will enhance the potential reach and impact of our unique platform."
Grau will continue in his role as chief executive and Mahlik will continue as COO with KAR.
“We’re thrilled to be part of KAR and a culture that shares our entrepreneurial spirit,” said Grau. “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.”
DRIVIN aggregates automotive retail, pricing, registration and other market and economic data from a variety of public and proprietary sources. The insights generated from that data are deployed through predictive pricing, inventory management and vehicle matching tools.
DRIVN will be based in Chicago with several KAR units, including Insurance Auto Auctions, KAR’s salvage auction business unit, and the newly opened ADESA Chicago auction in Hoffman Estates. KAR will now have nearly 600 employees in the Chicago market at eight locations.