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
KC favorites eye World Cup: How to become ‘the spot’ for visitors without losing KC flavor
Even a visitor can become a repeat customer, said Dulcinea Herrera, stressing the importance of Kansas City businesses making their establishments a destination — not just a one-time stopover or accidental find — for international fans and other out-of-town guests when the FIFA World Cup arrives next summer. The goal: Win them over with intentional…
Meet LaunchKC’s winners: $60K prize today; world headquarters in KC tomorrow
Every iconic company headquartered in Kansas City — from Helzberg Diamonds to Hallmark — started with an entrepreneur hoping to scale a small idea into big impact, said Jim Erickson, teasing a next wave of emerging startups and the latest winners of the LaunchKC grants competition. Eight early-stage companies were announced Monday as recipients of…
Tesseract pairs one-button robotic badge with real-time, multi-industry workforce tracking
A new site management platform — complete with wearable robots designed to automatically document work as it happens — is expected to help construction, infrastructure, and military teams gain real-time clarity across their projects and workforce, said John Boucard. “Instead of relying on spreadsheets, manual reporting, or guesswork, leaders now have continuous visual and sensor…
LISTEN: KoraLabs connects AI to the field, helping agtech grow a more sustainable future
On this episode of our 12-part Plug and Play Topeka podcast series, we speak with Luca Corinzia of KoraLabs — an agtech pioneer based in Switzerland that’s bridging the gap between scattered farm data and actionable insights. KoraLabs’ AI-driven “digital twin” platform integrates field data, satellite imagery, soil and weather models to help agronomists and…