The Ohio, US-based business is hoping to sell itself for $5bn according to Reuters, which said it may have to settle for upwards of $4bn.
Earlier reports said technology-focused investment bank Qatalyst Partners had been hired to run the sale, while Deutsche Bank is also understood to be helping the company with the deal.
Reynolds was founded in 1866 as a forms printing company and began providing accounting forms for Chevrolet dealers in 1927.
It has since evolved to become a software, business form supplier and professional services company for all areas of the car sales industry, including providing car dealer websites, digital advertising and marketing services.
The company was bought by Universal Computer Systems in a $2.8bn deal in 2006.
In September AltAssets reported that KKR, Apollo Global Management and CDR were among private equity firms considering a buyout of KAR for around $4bn, but the sale was scrapped according to Reuters.
Carmel, Indiana-based KAR hired Evercore Partners to handle the sale process, and is about 78 per cent owned by Kelso & Co, Goldman Sachs Capital Partners, ValueAct Capital and Parthenon Capital.
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