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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowCarmel-based KAR Auction Services Inc. on Feb.27 said it plans to spin off its Insurance Auto Auctions salvage auction unit in the next year, creating a separate publicly traded company.
The separation is designed to “increase shareholder value and focus each company’s strategic priorities on its respective marketplace and unique customers,” the company said in a written statement.
Stockholders in KAR would retain shares in the remaining KAR Auction Services business and receive new shares of Insurance Auto Auctions, or IAA.
IAA accounted for 34 percent of KAR's revenue of $3.5 billion in 2017.
After the separation, KAR would focus primarily on its whole car auction marketplaces and technology side of the business. IAA would focus on the salvage vehicle marketplace, serving insurers and buyers.•
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