Openlane, Inc. (NYSE: KAR) has announced a significant development in its financial structure, with the company reaching definitive agreements to repurchase 53% of its Series A convertible preferred stock originally issued in June 2020. The cash consideration for this transaction amounts to approximately $559 million.
The repurchase will result in a reduction of the preferred shares held by funds advised by Apax Partners, L.P. ("Apax") by approximately 50%, and the preferred shares held by funds advised by Periphas Capital, L.P. ("Periphas") 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 includes the value for future dividends tied to those preferred shares.
Since the initial issuance of the preferred stock in 2020, Openlane has made strategic investments that have proven highly beneficial, leading to a strong return for the Apax and Periphas funds and their respective investors. Peter Kelly, the CEO of Openlane, emphasized the company's rebranding, technological advancements, and accelerated growth as contributing factors to this success.
The transaction is expected to close as soon as practicable after September 30, 2025, and prior to October 20, 2025. More details about the definitive agreements between Openlane and the preferred stockholders will be available in a Form 8-K to be filed by the company.
These developments reflect Openlane's commitment to optimizing its financial structure and creating a more compelling opportunity for both new and existing investors. Today the company's shares have moved 0.26% to a price of $29.285. Check out the company's full 8-K submission here.
