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
Missouri’s best breweries are in Kansas City (and they have the medals to prove it)
Two Kansas City brewers barreled through the competition earlier this week, earning the first-ever, statewide “Brewery of the Year” honors for local favorites Boulevard and BKS Artisan Ales. It’s a feat fermented through years of dedication by the teams behind the labels, both brewers said. “From the day we opened, we have kept balance with…
World Cup readiness event opens City Hall to entrepreneurs hoping to get on the roster
Kansas City wants to score as many points as possible when the FIFA World Cup arrives in 2026, said Janá Wagner, emphasizing that a special event planned Tuesday during GEWKC aims to get businesses into the game now — playbook in hand. “Our goal is to help as many entrepreneurs as possible get properly licensed,…
10 top event picks for GEWKC; build your own schedule from 60+ sessions
With dozens of events on the calendar for GEWKC, Union Station will be bustling with activity, said Callie England, noting organizers intentionally curated a week where attendees can’t go wrong — no matter how they fill out their itinerary. “While the schedule can feel full, it’s truly the best of the best,” said England, director of…
How AI changes the the founder code: ‘This is all moving faster than anyone expected’
New tech opportunities — like artificial intelligence — hold the potential to equalize the Kansas City region among more established startup hubs, investment leaders said Thursday, but to fully take advantage, entrepreneurs who want strong, lasting companies must have a fire inside them. Not to mention grit. “Several really incredible entrepreneurs said, ‘I think the one…