OPENLANE, which operates digital marketplaces for wholesale used vehicles, recently signed a definitive agreement to acquire Manheim Canada from Cox Automotive, the company announced on Dec. 4.
In a news release, the company said the acquisition is subject to certain customary closing conditions. The transaction is valued at CA$130 million and includes the Manheim Montreal facility (but excludes its other Canadian facilities), along with auction sales, operations, and certain staff across Manheim Canada.
“Building on the momentum of our combined, single OPENLANE Canada digital marketplace launch in June, this transaction will help accelerate commercial and dealer growth, and deliver an improved customer experience,” said Peter Kelly, CEO of OPENLANE, in a statement.
For buyers, he said the acquisition will mean more inventory and therefore more choice. It will also result in what Kelly described as an easier or simplified way to find “the very best vehicles” for their lots. For sellers, it means instantly accessing OPENLANE’s large buyer-base, which in turn offers them the opportunity to get the best possible market results on every sale.
“(By) deepening our data set, we can generate enhanced vehicle recommendations, pricing information and other insights to help customers make better informed wholesale decisions,” added Kelly.
The company will, as part of the acquisition, assume Manheim Canada’s customer relationships. Once the transaction closes Manheim Canada will be integrated into the existing OPENLANE Canada business. The move will see all the inventory combined within the company’s’ digital marketplace.
