DRIVIN, a Chicago-based startup that helps automotive dealers buy and sell used cars, is being acquired by KAR Auction Services.
KAR, which provides a broad range of technology solutions for the used car industry, said the acquisition will help it meet increasing demand for data-driven technologies.
"Translating the power of data into actionable insights is a strategic imperative for KAR. It's what our customers need and expect," said Jim Hallett, chairman and CEO of KAR in a statement. "DRIVIN has quickly earned the reputation as a disruptor, and its robust data science capabilities are highly sought after in the industry. KAR and DRIVIN will help accelerate the delivery of innovative new solutions to our diverse customers."
Founded in 2015, DRIVIN utilizes a broad range of data points including sales figures, demographic information and broader economic trends to help automotive dealers optimize their inventories and price their vehicles correctly. KAR will leverage DRIVIN’s proprietary technology to improve the deployment of its existing products and services, according to a statement issued Wednesday morning.
DRIVIN’s co-founders include serial entrepreneurs Brad Keywell and Eric Lefkofsky, as well as current CEO Kayne Grau and COO Justin Mahlik. Grau and Mahlik will stay on as president and COO, respectively, and the company will remain in Chicago.
"We're thrilled to be part of KAR and a culture that shares our entrepreneurial spirit," said Grau in a statement. "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."
According to Crain’s, DRIVIN’s team will continue to grow under its new owners. Grau will also lead a River North-based KAR innovation lab.
The acquisition will take place in the form of a $43 million stock transaction, and bring KAR’s total Chicago employee count close to 600.
Images via DRIVIN.