KAR Global got a big shot in the arm to help its operations, technology, digitization and development amid the recovery.

The company announced a $550 million strategic investment Tuesday led by Apax Partners-advised funds that KAR’s chief executive says will “help us continue to support our global customers and further accelerate our digital transformation.”

KAR plans to use the proceeds “to expedite the resumption of operations to meet market demand, sustain the company’s technology platforms and development pipeline and navigate the industry and economic recovery,” the company said in a news release.

“KAR took early and decisive steps in response to COVID-19 to protect the safety of our employees and customers, preserve our capital position and keep our operations moving forward,” KAR chairman and CEO Jim Hallett said in a news release.

 “This transaction will help us continue to support our global customers and further accelerate our digital transformation, Hallett said. “Apax is the right strategic partner for our company, employees and stockholders, and their investment reinforces the strength of our brands, market position and long-term strategy for growth and expansion.”

There is a 7% divided on the newly issued perpetual convertible preferred KAR stock “which shall be paid in-kind for the eight quarters following closing, and thereafter in cash or in-kind at KAR’s option,” KAR said in a news release.

The initial conversion price per share on the stock is $17.75. That’s roughly a 42% premium to where KAR’s stock closed Friday ($12.52 per share).

In addition to funds advised by global private equity Apax Partners, which led the investment, Periphas Capital, L.P. also participated in the investment.

“KAR is an internationally recognized leader in wholesale remarketing with a strong track record of innovation,” said Roy Mackenzie, partner at Apax Partners, said in the release.

“The company’s market leading digital platforms and investments in data analytics uniquely position them to thrive in the new digital normal,” Mackenzie said. “We look forward to partnering with KAR’s progressive and entrepreneurial management team to transform their industry and drive long-term value for all stockholders.”