REDWOOD CITY, Calif. — OPENLANE chief executive officer Daniel Farrar looked to quell any apprehension from recovery agencies about the online auction company's recent acquisition of Recovery Database Network.

In describing the deal to Auto Remarketing, Farrar emphasized that "we expect it to go smoothly."

"RDN will be a wholly owned subsidiary of OPENLANE, so for customers of RDN all of their existing relationships remain in place," he continued.

"There will be opportunities to provide RDN recovery agency customers with additional services and to accelerate the development of the RDN platform with the additional resources of OPENLANE. We are focused and committed to ensuring that the integration is smooth and transparent," Farrar added.

Last week, OPENLANE revealed its plans to acquire RDN, a software platform provider that links auto lending institutions with recovery companies to expedite the repossession of vehicles. 

The two companies are well aware of each other since they brokered a technology integration partnership back in March. Farrar said it quickly became apparent that bringing RDN into the OPENLANE portfolio would be wise.

"We realized immediate benefits for our customers upon announcing the partnership with RDN in March," Farrar stated.

"OPENLANE customers benefit from the ability to draw on an additional inventory source for used vehicles. For lenders who already work with OPENLANE, they can make recovery assignments and remarket vehicles at one location, with a source they already trust," he went on to say.

"We also saw the incredible business that the team at RDN built. This in conjunction with our momentum in the recovery sector made this acquisition the next logical step," Farrar added.

Unlike some other acquisitions, the management team at RDN will remain intact. President Todd Hodnett described how important that factor is.

"Since RDN will become a wholly owned subsidiary of OPENLANE, day-to-day operations at RDN will remain the same," Hodnett told Auto Remarketing.

"It will be business as usual. The entire RDN team will remain in place and continue to manage customer relationships as before," he declared.

Hodnett indicated the deal strengthens what RDN could offer to both recovery agencies and lenders that need to repossess collateral.

"It is important to reiterate that OPENLANE and RDN are focused on providing the best technical platforms to make the remarketing of repossessed vehicles more efficient for both recovery agencies and lenders," Hodnett explained.

"Since RDN will be become a subsidiary of OPENLANE, we expect the relationship will be similar to OPENLANE's CarsArrive Network, which OPENLANE acquired in 2007," he continued. "CarsArrive has continued to be a leading provider of transport solutions for the remarketing sector and has thrived and grown since being acquired by OPENLANE. OPENLANE and RDN will continue to be an ‘open' company and partner with all lending, recovery and remarketing companies.

"Since the entire RDN team will remain in place, we will also continue to work directly with our clients and customers, and there will be no changes to the customer relationships we've already established," Hodnett declared.

As indicated previously, news about OPENLANE's decision to acquire RDN already has been well-received by the repossession industry.

"The combined forces of OPENLANE and RDN will enable independent recovery companies to strengthen their direct relationship with clients," noted Jim Hall, president of the American Recovery Association.

"The complete services that OPENLANE now offers recovery companies are a boon to the industry and will make the remarketing of repossessed vehicles more efficient than ever before," Hall added.

Positive reactions from industry leaders such as Hall are why Farrar believes OPENLANE made a prudent decision.

"This acquisition helps OPENLANE deliver full life cycle vehicle remarketing solutions, as well as opportunities for additional services recovery companies can provide to their clients," Farrar noted.

"The combined technology platform from OPENLANE and RDN creates a groundbreaking recovery and remarketing information management system for recovery agencies and lenders. Not only can lenders make recovery assignments to repossession service providers through the system, but recovery agencies can expand their services and remarket the vehicles they've been assigned in one convenient location. It's a great win-win for the both recovery agency and lender customers," he concluded.