OPENLANE has reached definitive agreements to repurchase 53% of the company’s Series A Convertible Preferred Stock, originally issued in June 2020, for cash consideration of about $559 million.

In a news release, the digital wholesale used-vehicle marketplace said the transaction will reduce the preferred shares held by funds advised by Apax Partners by approximately 50% and the preferred shares held by funds advised by Periphas Capital by some 80%.

“The strategic investments made in our company since 2020 have proven highly beneficial for OPENLANE and our customers, and generated a strong return for the Apax funds, Periphas funds and their respective investors,” OPENLANE CEO Peter Kelly said. “Since then, we have rebranded and simplified our company, extended our technology leadership and accelerated growth.

“The transactions announced today, combined with the strong cash-generation characteristics of our asset-light, digital operating model, make OPENLANE an even more compelling opportunity for new and existing investors.”

OPENLANE said the repurchase price of $29.70 per share of common stock, on an as-converted basis, is the result of a negotiated market-based buyout and includes value for future dividends tied to those preferred shares.

“OPENLANE’s transformation over the past several years has been impressive, and the positive momentum they are building is delivering strong results,” Apax partner Roy Mackenzie said. “We firmly believe in the broad opportunities for OPENLANE’s continued growth and we remain committed to supporting the company and its management team.”

Sanjeev Mehra and the other Periphas principals will continue to hold the balance of the remaining preferred shares currently held by Periphas, OPENLANE said.

OPENLANE expects the repurchase transactions to close between Sept. 30 and Oct. 20, and said more information about its definitive agreements with the preferred stockholders will be available in a Form 8-K to be filed by the company.