Openlane, Inc. (NYSE: KAR) has announced a significant development with the repurchase of 53% of the company's Series A convertible preferred stock originally issued in June 2020. The transaction, valued at approximately $559 million, will reduce the preferred shares held by funds advised by Apax Partners, L.P. by about 50% and the preferred shares held by funds advised by Periphas Capital, L.P. by approximately 80%.
The negotiated market-based buyout will see the repurchase price of $29.70 per share of common stock, on an as-converted basis. This repurchase reflects the value for future dividends tied to those preferred shares.
Peter Kelly, CEO of Openlane, highlighted the strategic investments made in the company since 2020, which have proven highly beneficial and generated a strong return for the investors. The company has undergone a transformation, rebranding, and simplifying its operations, extending its technology leadership, and accelerating growth.
The repurchase transactions are anticipated to close as soon as practicable after September 30, 2025, and prior to October 20, 2025. The definitive agreements between Openlane and the preferred stockholders will be available in a Form 8-K to be filed by the company.
Openlane, Inc. (NYSE: KAR) operates as a leading operator of digital marketplaces for wholesale used vehicles, connecting 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. The market has reacted to these announcements by moving the company's shares -1.18% to a price of $29.20. For the full picture, make sure to review OPENLANE's 8-K report.
