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
From the pitch to the Plaza: KC Current flipping the switch on new retail shop in iconic shopping district
Add team gear to the holiday shopping list this weekend. The Kansas City Current is kicking off a new permanent retail shop on the Country Club Plaza — just in time for the 2025 Plaza Lighting Ceremony. The Current Shop is set to open Wednesday, Nov. 26, in the former Starbucks building at 302 Nichols…
Kauffman wraps three fast-paced rounds of capacity building: Meet the year’s final grantees
A revised strategy to help nonprofit organizations strengthen their internal effectiveness and long-term stability — while still aligning with the Kauffman Foundation’s focus areas — next must showcase outcomes, said Allison Greenwood Bajracharya, announcing a final round of capacity building grant winners for 2025. Built with intentional versatility, capacity building grants are meant to meet…
Five stocking stuffer gift ideas that brew support for women-owned KC businesses
Editor’s note: The following holiday feature is presented by nbkc bank, where small businesses find big support Shopping with intention this season is just one way Kansas City gift-givers can squeeze local impact into each nook and cranny of those holiday stockings, said Melissa Eggleston, highlighting a sleigh-ful of women-owned businesses shoppers should bank on…
Their brands survived legal bruises; here’s what still keeps these founders up at night
A brand worth building is worth safeguarding, said Bo Nelson, joining a chorus of battle-tested entrepreneurs at GEWKC who encouraged emerging business owners to trademark their own peace of mind early by locking down intellectual property — like designs, names and unique processes — from the start. “If you do have something that you genuinely,…