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
Simplifying access: PayIt teams with KCK Unified Government for enhanced myWyco app
Interacting with state and local government can and should be seamless, said Monica Harrell of PayIt, a KC tech firm that partnered its statewide iKan app with Wyandotte County’s myWyco app to create enhanced access for residents. “It’s a more streamlined experience,” said Harrell, senior client manager for Payit, “Especially because residents are not usually…
LaunchCode partners like VML turn apprentices into professional programmers
Tech fields provide a never-ending learning experience, said Mohammad Rasoulipour, a creative technologist at VML. With a background in design, Rasoulipour turned to LaunchCode to get a leg up in the web design world, try something new — and land a job a premier marketing and advertising firm like VML. LaunchCode, a free tech training program,…
Bobby Burch: ‘The mountains are calling, and I must go’ — farewell and thank you
Editor’s Note: Startland News co-founder and editor-in-chief Bobby Burch will depart the storytelling organization at the end of July. Tommy Felts will assume leadership of Startland effective immediately. It was three-and-a-half years ago when Kansas City Startup Foundation CEO Adam Arredondo approached me with a “what if” scheme to start a publication focused on entrepreneurship.…
WATCH: No reason for ‘lone wolfing’ the startup grind, LaunchKC past winners say as application window narrows
Editor’s note: This article is sponsored by LaunchKC but was independently produced by Startland News. With a July 11 application deadline nearing, LaunchKC past winners emphasized the popular, high-profile grants contest is about much more than chasing a payday. “There’s the community piece. There’s the exposure piece. But once you win — or even once…