Transaction to Advance Digital Strategy and Growth through Expanded Inventory, Data and Customer Base
OPENLANE, a leading operator of digital marketplaces for wholesale used vehicles, has announced its acquisition of the Manheim Canada business from Cox Automotive. This strategic move aims to enhance OPENLANE’s digital strategy by incorporating Manheim Canada’s inventory, buyers, sellers, and data into the OPENLANE Canada digital marketplace.
The transaction, valued at $130 million CAD or approximately $95 million USD, includes the acquisition of the Manheim Montreal facility and auction sales, operations, and select staff across Manheim Canada, which intends to exit the Canadian market.
OPENLANE’s CEO, Peter Kelly, expressed excitement about the acquisition, stating, “OPENLANE’s vision is to build the world’s greatest digital marketplaces for used vehicles – and this acquisition helps advance our digital strategy. For buyers, more inventory means more choices and a simplified way to find the very best vehicles for their lots. For sellers, accessing OPENLANE’s broad buyer-base means achieving the best market results possible on every sale.”
By combining Manheim Canada’s assets with OPENLANE’s existing Canada business, the company aims to accelerate commercial and dealer growth, offering an improved customer experience. The integration will ensure a seamless transition for customers and maintain access to services and offerings such as inspections, reconditioning, transport, and logistics.
Trevor Henderson, Chief Operating Officer of OPENLANE Canada, emphasized the commitment to customer success and simplifying the wholesale experience, stating, “We are excited to introduce these valuable customers to our unique combination of innovative technology and personalized, local support. From AI-enhanced inspections to flexible sale formats, to fast, reliable payment, ownership, and reconditioning services, we’re committed to removing the hassles of wholesale.”
As part of the transaction, OPENLANE will assume Manheim Canada’s customer relationships. The company plans to consolidate operations at nearby locations, ensuring a smooth transition for customers while optimizing operations.
The acquisition also includes the purchase of Manheim’s Montreal facility, which will become OPENLANE’s new location. The company will market and sell its existing Montreal facility, utilizing the proceeds to fund a significant portion of the acquisition costs.
The transaction represents a significant step forward in OPENLANE’s digital strategy, expanding its inventory, data, and customer base in the Canadian market. The company aims to build the world’s most comprehensive digital marketplace for used vehicles, providing sellers and buyers with innovative, technology-driven remarketing solutions.
OPENLANE, Inc. is a leading provider of technology-driven remarketing solutions in the global wholesale used vehicle industry. The company’s end-to-end platform supports whole car, financing, logistics, and other ancillary services, reducing risk, improving transparency, and streamlining transactions for customers worldwide. With headquarters in Carmel, Indiana, OPENLANE operates across the United States, Canada, Europe, Uruguay, and the Philippines.
Certain statements in this press release may be considered “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current assumptions, expectations, and beliefs but are not guarantees of future performance. Factors that could cause actual results to differ materially from the projected results include risks and uncertainties discussed in the company’s periodic reports filed with the Securities and Exchange Commission. The forward-looking statements are made as of the date of this press release and the company undertakes no obligation to update them.
In conclusion, OPENLANE’s acquisition of the Manheim Canada business represents a strategic move to advance its digital strategy. By incorporating Manheim Canada’s assets and customer base, OPENLANE aims to enhance its digital marketplace and provide a better experience for buyers and sellers in the Canadian wholesale used vehicle industry.