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
Events Preview: Writing a business plan, Code for KC
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? Feel free to add it to the FWD/KC calendar for increased exposure. Once your event…
LinkedIn like tool aims to address tech talent gap by connecting teachers, industry pros
Kansas City Tech Council and Blue Ocean Consulting have teamed together to create a software solution to address the talent gap in the tech industry. iSpeakSTEM.com is a proprietary software system that aims to build a bridge between the business and education communities. Launching in Kansas City classrooms this fall, the software connects teachers with…
VIDEO: Empowering at-risk women, Weave Gotcha Covered founder reflects on journey
About 10 years ago, Kelly Wilson’s family was one of the many that was hit hard by the Great Recession. A former stay at home mom, Wilson had to figure out a way to support her family. She eventually found a job at a local fabric store for $5 an hour, which was the minimum…
JE Dunn leads $500K round in smart apartment startup Homebase
A handful of Kansas City firms both large and small are partnering to advance smart home technologies. JE Dunn Construction Group and Sunflower Development Group have led at $500,000 investment round in Kansas City-based Homebase, a tech firm building an IoT smart apartment and building platform for multi-family properties. Will Winkler of PSW Real Estate,…