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
Pear Deck raises $4M to accelerate its ed tech tool
Fast-growing ed tech firm Pear Deck has plucked a $4 million investment as it plans to expand the use of its student engagement platform. The Iowa City-based firm — which operates a sales and marketing office in Kansas City — raised the capital from Growth Street Partners and existing investors, including Village Capital, Hyde Park…
Olathe-based Metactive lands $1.5M, two medical patents
Olathe-based medical device company Metactive released a pair of positive announcements for the firm. In addition to being awarded two patents, the firm closed on a $1.5 million Series A funding round — bringing its total raised to over $9 million. The round was co-led by the Mid-America Angels and an unnamed investor. Previously, the firm…
Uber exec with KC ties resigns to explore Kansas politics
An Uber executive with strong ties to Kansas City has announced his resignation and return to Kansas. Uber announced Tuesday that Brian McClendon, vice president of maps and business platforms at Uber, would be stepping down from his post as he explores a life in Kansas politics. A University of Kansas graduate, McClendon in January…
Vetrepreneur event Purple Connection taking flight in KC
An event connecting veteran entrepreneurs is making waves in Kansas City. Led by the Veteran Leadership Network and other local organizations, the next the Purple Connection will be held April 12 at the GRID Collaborative Workspaces. Community organizer Jesse Beaudin said this is the third iteration of the event series, and he was surprised by…