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
Sprint Accelerator Demo Day preview (part III)
The second class of the Sprint Mobile Health Accelerator is gearing up for its much-anticipated Demo Day, which serves as a culminating event and is expected to draw a crowd of nearly 2,000 people. Led by Boulder-based Techstars, the Kansas City-based accelerator is now hosting 10 mobile health tech startups from around the world for its…
KC finance tech firm Lending Standard nabs nearly $500K
Kansas City-based Lending Standard recently raised nearly $500,000 to further develop its software and hire additional employees. The financial tech company snagged the funds from regional investors, and with it has hired two additional technical staff, bringing its total headcount to eight people. Lending Standard created a platform on which organizations can receive and collaborate…
Sprint Accelerator Demo Day preview (part II)
The second class of the Sprint Mobile Health Accelerator is gearing up for its much-anticipated Demo Day, which serves as a culminating event and is expected to draw a crowd of nearly 2,000 people. Led by Boulder-based Techstars, the Kansas City-based accelerator is now hosting 10 mobile health tech startups from around the world for its…
Study: Lack of funding curbs early-stage biz growth in Kansas City
The Kansas City metro area is losing out on millions of dollars in investment funding that could be helping to add jobs and grow businesses in the region, according to a new study. In recent years, area early-stage businesses’ progress has been stymied thanks to Kansas City’s lacking of microloans, seed capital and locally-based venture…