OPENLANE to Repurchase 53% of Series A Convertible Preferred Stock
OPENLANE (NYSE: KAR) has announced a significant stock repurchase agreement to buy back 53% of its Series A Convertible Preferred Stock for approximately $559 million. The transaction will reduce preferred shares held by Apax Partners by about 50% and Periphas Capital by approximately 80%.
The repurchase price is set at $29.70 per share of common stock on an as-converted basis, representing a negotiated market-based buyout. The transaction is expected to close between September 30 and October 20, 2025. The company's CEO highlighted OPENLANE's successful transformation since 2020, including rebranding efforts and technology advancement.
OPENLANE (NYSE: KAR) ha annunciato un rilevante accordo di riacquisto azionario per comprare il 53% della sua Series A Convertible Preferred Stock per circa 559 milioni di dollari. L'operazione ridurr脿 le azioni privilegiate detenute da Apax Partners di circa il 50% e quelle di Periphas Capital di circa l'80%.
Il prezzo di riacquisto 猫 fissato a 29,70 dollari per azione in base al valore convertito in azioni ordinarie, rappresentando un buyout negoziato basato sul mercato. La transazione 猫 prevista in chiusura tra il 30 settembre e il 20 ottobre 2025. L'amministratore delegato ha sottolineato la trasformazione avvenuta in OPENLANE dal 2020, comprensiva di rebranding e avanzamenti tecnologici.
OPENLANE (NYSE: KAR) ha anunciado un importante acuerdo de recompra de acciones para adquirir el 53% de su Series A Convertible Preferred Stock por aproximadamente 559 millones de d贸lares. La operaci贸n reducir谩 las acciones preferentes en manos de Apax Partners en alrededor del 50% y las de Periphas Capital en aproximadamente el 80%.
El precio de recompra se fija en 29,70 d贸lares por acci贸n en base a su conversi贸n a acciones ordinarias, representando una compra negociada basada en el mercado. Se espera que la transacci贸n se cierre entre el 30 de septiembre y el 20 de octubre de 2025. El director ejecutivo destac贸 la exitosa transformaci贸n de OPENLANE desde 2020, incluyendo el rebranding y avances tecnol贸gicos.
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OPENLANE (NYSE: KAR) a annonc茅 un important accord de rachat d'actions visant 脿 acqu茅rir 53 % de sa Series A Convertible Preferred Stock pour environ 559 millions de dollars. La transaction r茅duira les actions pr茅f茅rentielles d茅tenues par Apax Partners d'environ 50 % et celles de Periphas Capital d'environ 80 %.
Le prix de rachat est fix茅 脿 29,70 $ par action sur une base convertie en actions ordinaires, repr茅sentant un rachat n茅goci茅 sur une base de march茅. La cl么ture de la transaction est attendue entre le 30 septembre et le 20 octobre 2025. Le PDG a soulign茅 la transformation r茅ussie d'OPENLANE depuis 2020, incluant un rebranding et des progr猫s technologiques.
OPENLANE (NYSE: KAR) hat eine bedeutende Aktienr眉ckkaufvereinbarung angek眉ndigt, um etwa 53 % seiner Series A Convertible Preferred Stock f眉r rund 559 Millionen US-Dollar zur眉ckzukaufen. Durch die Transaktion werden die Vorzugsaktienbest盲nde von Apax Partners um etwa 50 % und von Periphas Capital um rund 80 % reduziert.
Der R眉ckkaufpreis betr盲gt 29,70 US-Dollar je Aktie auf umgewandelter Stammaktienbasis und stellt einen verhandelten, marktgerechten Buyout dar. Der Abschluss der Transaktion wird zwischen dem 30. September und dem 20. Oktober 2025 erwartet. Der CEO hob OPENLANEs erfolgreiche Transformation seit 2020 hervor, einschlie脽lich Rebranding und technologischer Fortschritte.
- Strategic reduction of preferred stock obligations by repurchasing 53% of Series A Convertible Preferred Stock
- Strong cash generation from asset-light, digital operating model enables $559 million repurchase
- Continued support and confidence from major investor Apax Partners
- Successful business transformation with technology leadership advancement
- Significant cash outlay of $559 million for the repurchase
- Remaining preferred shares still outstanding after transaction completion
Insights
OPENLANE's $559M preferred stock repurchase reduces debt obligations, improves capital structure, and signals management confidence in future performance.
OPENLANE's decision to repurchase 53% of its Series A Convertible Preferred Stock for
The financial structure of this deal is particularly noteworthy for three reasons. First, it eliminates future dividend obligations on the repurchased preferred shares, improving cash flow and potentially enhancing earnings per common share. Second, the negotiated repurchase price reflects management's assessment that the current value proposition justifies eliminating these preferred claims.
Most significantly, this transaction leverages OPENLANE's "asset-light, digital operating model" with strong cash generation characteristics. This indicates the company has reached a level of financial stability where it can deploy substantial capital to optimize its capital structure while maintaining operational flexibility.
The timing and structure of this repurchase, coming after several years of transformation, suggests management believes the company's future earnings potential exceeds the cost of carrying these preferred shares. By reducing the preferred stock overhang, OPENLANE is creating a cleaner capital structure that may be more attractive to common equity investors.
颁础搁惭贰尝,听滨苍诲., Sept. 9, 2025 /PRNewswire/ -- OPENLANE, Inc. (NYSE: KAR), a leading operator of digital marketplaces for wholesale used vehicles, has reached definitive agreements to repurchase
"The strategic investments made in our company since 2020 have proven highly beneficial for OPENLANE and our customers, and generated a strong return for the Apax funds, Periphas funds and their respective investors," said Peter Kelly, CEO of OPENLANE. "Since then, we have rebranded and simplified our company, extended our technology leadership and accelerated growth. The transactions announced today, combined with the strong cash generation characteristics of our asset-light, digital operating model, make OPENLANE an even more compelling opportunity for new and existing investors."
Roy Mackenzie, Partner at Apax, added, "OPENLANE's transformation over the last several years has been impressive, and the positive momentum they are building is delivering strong results. We firmly believe in the broad opportunities for OPENLANE's continued growth, and we remain committed to supporting the company and its management team."
Sanjeev Mehra and the other Periphas principals will continue to hold the balance of the remaining preferred shares currently held by Periphas.
The repurchase transactions are anticipated to close as soon as practicable after September 30, 2025, and prior to October 20, 2025. More information about the definitive agreements between OPENLANE and the preferred stockholders will be available in a Form 8-K to be filed by the Company.
OPENLANE Contacts: | |
Media Inquiries: | Analyst Inquiries: |
Laurie Dippold | Itunu Orelaru |
(317) 468-3900 | (317) 249-4559 |
础产辞耻迟听翱笔贰狈尝础狈贰
OPENLANE, Inc. (NYSE: KAR) makes wholesale easy by connecting the leading automotive manufacturers, dealers, rental companies, fleet operators, captive finance and lending institutions as buyers and sellers to create the most advanced digital marketplace for used vehicles. Our innovative products and services deliver a fast, fair and transparent experience that helps customers make smarter decisions and achieve better outcomes. Headquartered in
Forward-Looking Statements
Certain statements contained in this press release include "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. In particular, statements made in this press release that are not historical facts (including, but not limited to, expectations, estimates, assumptions and/or projections regarding the industry, business, future operating results, potential acquisitions and anticipated cash requirements) may be forward-looking statements. Words such as "should," "may," "will," "anticipate," "expect," "project," "target," "intend," "plan," "believe," "seek," "estimate," "assume," "could," "continue" and similar expressions identify forward-looking statements. The forward-looking statements contained in this press release are based on management's current assumptions, expectations and/or beliefs, are not guarantees of future performance and are subject to substantial risks, uncertainties and changes that could cause actual results to differ materially from the results projected, expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the section entitled "Risk Factors" in our annual and quarterly periodic reports filed with the Securities and Exchange Commission. Many of these risk factors are outside of our control, and as such, they involve risks which are not currently known that could cause actual results to differ materially from those discussed or implied herein. The forward-looking statements in this press release are made as of the date on which they are made and we do not undertake to update any forward-looking statements.
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