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
eSports founder: High school gaming ‘not just for jocks anymore’
When Mason Mullenioux attended Blue Springs High School in the early 2000s, he — like many teenagers — wanted to find a place where he belonged. “I was decently athletic, but when I tried out for tennis and basketball I didn’t make the team,” Mullenioux said. “But, I was always very good at ‘World of…
Techstars Spotlight: Software platform courts easy-to-manage litigation data
Amid a digitized world, the legal industry is among the “last frontier” for tech, Thadd Hale said. “There is a lot of opportunity in the legal space,” said Hale, co-founder and CEO of Vector Legal Method. “Litigation as a whole is not very structured or standardized. As you can imagine, lack of standardization can be…
Techweek KC to feature local leaders, hiring fair, grant competition
Techweek is a natural fit for Kansas City, Amanda Signorelli said. “Kansas City is one of the country’s most influential, up-and-coming tech hubs,” Signorelli, Techweek CEO, said in a release. “The community has given Techweek a warm welcome.” The Chicago-based conference series, which focuses on innovation and entrepreneurship, returns to the City of Fountains for…
Events Preview: Tech CEO Speaker Series, ECJC sales series
There are a plethora of entrepreneurial events hosted in Kansas City on a weekly basis. Whether you’re an entrepreneur, investor, supporter, or curious community member — we recommend these upcoming events for you. Are you hosting a relevant community event? Add it to the KCSourceLink Calendar for increased exposure. Email info@kcsourcelink.com for assistance. Animal Health…