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
This voter-approved investor backed Zhou B Arts, KD Academy and a new hotel at 18th and Vine; now it has a new home
EDCKC absorbing initiative built to strengthen KC’s urban core after $60M in investments A move to transition the Central City Economic Development (CCED) program under the umbrella of a larger KCMO impact agency is expected to boost the urban core-focused initiative’s ability to uplift both the people and the places at the heart of Kansas…
Hidden costs of grief: Chef’s murder illustrates economic toll of gun violence in KC
Editor’s note: This story was originally published by The Beacon, a member of the KC Media Collective, which also includes Startland News, KCUR 89.3, American Public Square, Kansas City PBS/Flatland, and Missouri Business Alert. Click here to read the original story from The Beacon, an online news outlet focused on local, in-depth journalism in the public interest.…
‘The American dream is the Midwest’: LaunchKC powers next generation of startup job creators
Editor’s note: The following is part of an ongoing feature series exploring impacts of initiatives within the Economic Development Corporation of Kansas City through a paid partnership with EDCKC. [divide] Relocating to Kansas City after winning a LaunchKC grant — and the community and infrastructure support that comes with it — gives Russel Karim’s startup a…