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
Recap: Bill would gut Kansas Bioscience Authority
A bill in the Kansas legislature if passed would dissolve the Kansas Bioscience Authority, which has recently served as a venture capital organization investing in early-stage bioscience firms. The measure — SB 305 — would shut down the organization and transfer its funds and obligations to the Kansas Department of Commence. Proponents of the KBA say…
Kansas City named a top tech locale
Kansas City again was touted as a top tech destination. Tech publication PC Magazine recently named Kansas City as one of “13 high-tech cities you’ll want to call home.” The magazine noted Kansas City’s access to Google Fiber, its low cost of living and communities such as the Kansas City Startup Village as reasons to…
Flow Forward Medical raises additional $1.3M
Flow Forward Medical boosted its latest funding round to further develop its device that helps improve outcomes for hemodialysis patients. The Olathe-based company closed a $1.3 million round of additional Series A financing led by the Kansas Bioscience Authority. Flow Forward previously raised $4.4 million, bringing its total funding raised to date to about $5.7 million.…
Schukman: 5 reasons why KC is the capital of social entrepreneurship
Take a walk in Kansas City’s startup scene and you’ll quickly hear something about KC’s devotion to becoming America’s most entrepreneurial city. This mantra is on everyone’s lips, from city leaders to corporate tycoons to scrappy startup founders. It’s amazing that in five years our city has created such clarity of purpose that millenials populating…