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
Six takeaways from the digital transformation at Hallmark
It’s not just tech startups that innovate and disrupt. One of the Kansas City area’s largest firms, Hallmark Cards, recently launched a digital transformation. In 2015, the greeting card giant funneled thousands of products that were popular on the shelves to online sales. The firm also updated its social media practices to attract younger customers.…
Report: Kansas City’s tech workforce is growing faster than most big cities
Techies around the nation have flocked to Kansas City at a rate faster than many major cities, including New York City, Chicago, San Diego and others according to a recent report. CBRE’s annual Tech Talent Report found that between 2011 and 2016 Kansas City’s tech workforce grew 39 percent, adding about 15,000 new tech staffers…
How the Kansas City Chiefs became the No. 1 NFL team in social engagement
Most Kansas City Chiefs fans are likely aware that they hold the Guinness World Record for the “loudest crowd roar at a sports stadium.” But what fans may not know is how that same enthusiasm and energy translates to the Kansas City Chiefs’ social media engagement. Using a variety of platforms, the team’s social media…
After 2014 departure, Lyft operations return to KCMO
Kansas Citians now have more ridesharing options than just Uber. After nearly a three year hiatus, the ride-sharing giant Lyft on Sunday re-launched its operations in Kansas City, Mo., including Kansas City International Airport. Lyft’s arrival represents more local competition among Uber and Lyft, and more choices for riders in Kansas City. Lyft already was…