CARMEL, Ind. — ADESA Inc. said last week that it has agreed to be acquired by a private equity fund group in a deal valued at $3 billion, according to The Associated Press

The deal also includes assumption of roughly $700 million in debt.

Under the deal, Kelso & Co., GS Capital Partners, an affiliate of Goldman Sachs, ValueAct Capital and Parthenon Capital, will convert each outstanding share of the Carmel-based holding company to $27.85 cash per share.

ADESA Chairman and CEO David Gartzke said in a statement that the agreement would benefit both the company's employees and customers.

The deal, which the company said is expected to close in the first half of 2007 pending regulatory approval, is the latest in a series of acquisitions by private equity funds.

Private equity firms are on track to raise $146 billion by the end of the year, according to Merrill Lynch & Co. The last peak was in 2000, when private equity firms raised $182 billion.

ADESA's operations span North America with 54 used vehicle auction sites, 42 Impact salvage vehicle auction sites and 85 AFC loan production offices.

Company spokeswoman Julie Vincent said that ADESA is a holding company with five brands, the largest of which is its chain of used auto auction sites.

She said ADESA is also one of North America's largest providers of short-term financing for independent used-car dealerships, offering loans typically ranging from 30 to 45 days.

Adesa ranks as the nation's second-largest used car auction company, behind Manheim Auctions Inc., a unit of Cox Enterprises Inc. of Atlanta, said Lynda Thomas, publisher of Used Car News, a trade publication based in St. Clair Shores, Mich.

Thomas said it's the biggest acquisition in the industry since 2000, when Manheim acquired ADT Automotive, then a subsidiary of Tyco International Ltd., for $1 billion.