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
[Updated] Fantasy football analytics startup launches hilarious crowdfunding campaign
Kansas City-based Edge Up Sports launched a crowdfunding campaign Wednesday to support its platform providing fantasy football players insight on their picks. With CEO Ilya Tabakh in full pads, Edge Up’s Kickstarter campaign video tackles the playful aspects of fantasy football — trash-talking, devastating losses and rowdy fans — to appeal to would-be backers. The…
Google Fiber opens business, consumer signups in Olathe
Google on Tuesday opened signups for Google Fiber throughout eastern Olathe. Residents and businesses of 13 “fiberhoods” can signup now through Sept. 24 for Google Fiber’s services, which include Gigabit, Gigabit + TV, Basic Internet or the small business service. The company Google Fiber launched their small business service in Kansas City in 2014. With…
TEDx ‘breaks through’ in Wyandotte County
This year, TEDxWyandotte seeks to break down barriers in their urban community. Wyandotte County, Kan., a community known for its diversity and urban challenges, is currently in a state of transition. The county as a whole is working towards neighborhood and school improvements, ultimately hoping to claim a new position in the Kansas City metropolitan.…
KC firm Handy Camel raising $600K for invention workshop
What do sheep farming and innovation have to do with one another? Quite a lot, if North Kansas City-based Handy Camel is any indication. Since he was a boy, Handy Camel CEO Tom Gray has fostered an innovative ethos, creating a number of doodads to make his work easier as a sheep farmer in New Zealand.…