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
Tariffs are driving up costs for American coffee roasters: ‘We’ve never seen anything like this’
Editor’s note: The following story was published by Harvest Public Media and KCUR, Kansas City’s NPR member station, and a fellow member of the KC Media Collective. Click here to read the original story or here to sign up for KCUR’s email newsletter. [divide] Coffee has gotten a lot more expensive in the U.S. as tariffs seep into the price…
‘I absolutely refuse to fail’: Sweet Peaches founder battles for national spot in frozen dessert aisles
Editor’s note: This story was originally published by Kansas City PBS/Flatland, a member of the Kansas City Media Collective, which also includes Startland News, KCUR 89.3, American Public Square, The Kansas City Beacon, and Missouri Business Alert. Click here to read the original story. [divide] Denisha Jones is poised to turn America’s devotion to apple pie on…
Kiva KC brings zero-interest microloans to founders shut out of traditional capital
Editor’s note: The Economic Development Corporation of Kansas City (EDCKC) and KC BizCare are partners of Startland News. [divide] Kansas City is betting that a global microlending model — one built on $25 contributions and community belief in everyday entrepreneurs — can help close one of the city’s most stubborn gaps: early-stage capital for founders…
How this startup (and a KC sports icon) turned young players into card-carrying legends overnight
An Overland Park-based custom trading card company and a Kansas City soccer star are teaming up on the pitch with a goal to make youth sports fun again. Stat Legend — launched by Chris Cheatham and Nick Weaver in 2023 — created custom cards for all 250 players who suit up for the Captains Soccer…