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
Mobility Designed names new CEO, raises more than $1M
Mobility Designed, a Kansas City medical device startup, announced Friday that it has appointed a new CEO. Previously held by co-founder Liliana Younger, the CEO role is now held by Dan Alcazar. A serial entrepreneur, Alcazar has experience growing early-stage, mid-sized and Fortune 500 companies, including RJR Nabisco, Sprint and Embarq. Younger will remain on…
Kansas City ranks as top U.S. tech, entrepreneurship hub
Kansas City’s emerging tech hub and entrepreneurial ecosystem continue to attract national attention. On Thursday, Kansas City ranked among the top tech cities in the U.S., according to the Tech Cities 1.0 report by Cushman & Wakefield. The report showcased the nation’s top 25 cities, with Kansas City nabbing the No. 22 spot on the…
More than 17K people expected for the biggest KC Maker Faire yet
For children, hardly a day goes by without the experience of arts, crafts, show and tell, building blocks or tinkering with toys. But in Kansas City, that young-at-heart spirit of creativity doesn’t have to be forgotten. In fact, it’s rekindled each year in a public outpouring at Union Station. On June 24 and 25, thousands…
Meet the five area startups partnering with KCMO to drive innovation
A quintet of startup firms are working with the City of Kansas City, Mo. as part of its Innovation Partnership Program. Launched in 2015, IPP pairs area startups with city departments to not only identify new efficiencies but also offer the firm a chance to earn business with the city. After being designated a department…