BacklotCars completes historic $425M exit, joining ‘power and fierce entrepreneurial spirit’ of KAR Global
November 13, 2020 | Startland News Staff
The $425 million acquisition of Kansas City-based BacklotCars is complete, nearly two months to the day it was announced.
“There is so much energy and excitement around this combination with our employees and with our customers,” Justin Davis, president and co-founder of BacklotCars, said in a release announcing the milestone acquisition’s completion Thursday by KAR Global.
“I’m proud of what the BacklotCars team has built and the thousands of strong dealer partnerships we’ve developed over the past six years,” Davis continued. “And I can’t wait to introduce the innovation, power and fierce entrepreneurial spirit of KAR Global to our culture, our products and our customer base.”
Believed to be the biggest exit on record within Kansas City’s startup ecosystem, BacklotCars announced the sale in September and its founders intentions to continue working within the company — which KAR will leave running in the metro.
Since 2014, BacklotCars has amassed a network of customers across 46 states. It has scaled its operations and marketplace, leveraging technology to deliver upon the mission of making wholesale easy, the company previously told Startland News.
After significant expansion in 2019, the company’s growth accelerated in 2020 as COVID-19 forced the automotive industry to take a digital-first approach to wholesale.
Justin Davis, BacklotCars; Back2KC 2018
Click here to learn more about BacklotCars.
BacklotCars joins a fleet of digital marketplaces within the KAR portfolio, including TradeRev, ADESA.com, and OPENLANE — the largest private label platform for exclusive, off-lease inventory in North America.
“We are laser-focused on providing dealers with the most efficient, convenient and economically advantageous digital marketplaces to sell and source inventory,” said Peter Kelly, president of KAR Global.
BacklotCars is set to help the company accelerate company growth into new markets while keeping a steady hand on the wheel of operations in existing cities, KAR said in a release.
The startup employs 187 full-time employees, 90 based in Kansas City. KAR has no plans to move BacklotCars from its local headquarters — which it established in the renovated Lightwell building last fall.
2020 Startups to Watch
stats here
Related Posts on Startland News
Techstars KC demo day: How to build inclusive teams that give first
When Lesa Mitchell first learned she’d be managing director of the inaugural Techstars KC program, she thought to herself, “Wow, I’m going to have the most inclusive program in the world,” she said Thursday at the program’s demo day event. As it turns out, diversity and inclusion can be difficult to apply — even with…
No folly for Techstars KC startups declaring growth at demo day (photo gallery)
Traction, new pilot tests and funding rounds were among the milestones met and revealed by a handful of Techstars KC startups at the accelerator’s inaugural demo day celebration. The 2017 Techstars KC class features a variety of industries — from edtech and artificial intelligence to virtual reality and food. Five of the 10 companies hail from…
Is KC enough for Amazon? Pros and cons
Correction: An earlier version of this story used an incorrect figure for Kansas City streetcar ridership. It has since been corrected to reflect the system’s more than 3 million riders. Kansas City wants Amazon. But does the online retail giant want KC? With only a few days remaining before the deadline to submit proposals for…
Deadlines approach for $100K, $500K co-investment opportunities for MO startups
It’s easy to form an idea. It’s more difficult to take it to market. The Missouri Tech Corporation’s IDEA Funds seek to facilitate the commercialization process for high-tech Missouri technologies, via a variety of co-investment opportunities. The IDEA Funds divide financing into four components that correspond to four stages of growth for entrepreneurs, from pre-investment…