KAR Auction Services announced late Monday that ADESA, its subsidiary, has agreed to acquire the equity of OPENLANE.

Peter Kelly will continue as OPENLANE’s chief executive officer and will report directly to KAR CEO Jim Hallett, management reported.

OPENLANE is being acquired for $210 million in cash, plus an increase for excess cash on OPENLANE’s balance sheet as of closing.

The transaction is subject to regulatory and other closing conditions; however, KAR revealed it plans to finance the transaction with available cash and proceeds from its revolving credit facility.

For the year, KAR expects OPENLANE to generate about $100 million in revenue and sell more than 300,000 vehicles to dealers via its platform.

On Monday, Hallett said, “OPENLANE is a natural fit for the KAR family of companies as it extends our online product offerings, provides a complementary customer base and adds talented members to our management team.

“Sellers and purchasers of vehicles continue to increase their use of online remarketing platforms, and we believe that enhancing our existing suite of online services and products will further support KAR’s objective of expanding our addressable market to capture transactions that currently take place outside the traditional wholesale auction channel,” he continued.

“This combination will allow ADESA to broaden its comprehensive end-to-end solutions for the vehicle remarketing industry and will provide opportunities for our sister companies, Insurance Auto Auctions and AFC,” he concluded.

After giving pro forma effect to the acquisition and the elimination of certain corporate costs, KAR expects OPENLANE’s pro forma adjusted EBITDA for 2011 to be about $13 million.

KAR anticipates that OPENLANE will contribute $20 to $25 million of adjusted EBITDA in 2012 which reflects synergies expected to be realized upon the integration of the businesses, management pointed out.

Moreover, KAR said it anticipates OPENLANE’s adjusted EBITDA to further improve once all integration activities are complete in 2013.

Just last week, KAR unveiled its second-quarter financial report as well as a forecast for how it might havigate the second half of this year. Auto Remarketing’s recap of Hallett speaking to investment analysts is available here.