REDWOOD CITY, Calif. -

In light of KAR Auction Services’ announcement that it is acquiring OPENLANE, both companies have issues to work through as they finalize this deal and gain regulatory approval.

Among these challenges, is that OPENLANE owns Recovery Database Network and KAR owns PAR North America, both working in the recovery and repossession space.

In an effort to clear up some concerns about how these two companies will work together, OPENLANE chief executive officer Peter Kelly issued a letter to the RDN customers, as follows:

“Yesterday (Aug. 15), it was announced that OPENLANE Inc., the parent company of Recovery Database Network, has signed a definitive agreement to be acquired by KAR Auction Services Inc., subject to certain closing conditions. Many of RDN’s and OPENLANE’s recovery service provider customers have asked questions about whether this acquisition will somehow affect RDN’s independence because PAR North America, a forwarding company and competitor to many RDN/OPENLANE recovery service provider customers, is also owned by KAR.

“KAR and OPENLANE are subject to regulatory laws and cannot finalize the integration until the transaction has closed, and more details will be forthcoming once that has happened. However, in the meantime I can assure you that KAR and OPENLANE are committed to operating RDN in a fashion that protects its customers’ information, including, but not limited to, the fee schedules, client lists and volume information. We intend for PAR and RDN/OPENLANE to have an arms-length relationship and independent systems and management to ensure that RDN remains true to its strategic mission of being an independent, open, many-to-many software platform through which recovery service providers can interact directly with lenders and manage their entire workflow management system with the knowledge and confidence that their data will remain confidential.

“Regarding remarketing, OPENLANE plans to continue to support recovery service providers and their lenders in selling vehicles directly from the recovery location, as we have for years. There are no current plans for changes in the OPENLANE team supporting the remarketing program, nor in the approach. OPENLANE remains committed to focusing on providing the most robust online auction platform and customer service in the industry.”

Sincerely,
Peter Kelly, chief executive officer, OPENLANE Inc.

Editor’s Note: For specifics regarding the transaction, visit Auto Remarketing’s earlier story here.