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 on top: Hat maker’s best-seller spotted on ‘GMA,’ ‘Ted Lasso’ as brand shapes its national profile
Sandlot Goods wears the spotlight well, said Thomas McIntyre, noting each high-profile media close up of its signature dad hat is another step toward establishing Kansas City’s only hat manufacturer as a national brand. After being featured on the “Made In America Christmas” segment of ABC World News Tonight with David Muir, Sandlot was again…
Rooftop Cinema Club premieres its open-air movie theater experience in KC’s Crossroads
Pink dusk views of the Kansas horizon and a cityscape bathed in sunset only added to the silver screen experience for midweek movie-goers trying out the newly opened Rooftop Cinema Club in Kansas City’s Crossroads Arts District. “Just the ambiance and what they did with the design is really cute,” said Emily Hendricks of Kansas…
Kauffman targets $250K grant toward vacant storefront revitalization as World Cup looms
Funding from the Ewing Marion Kauffman Foundation is expected to help Kansas City prepare for an influx of visitors cheering on competitors at the 2026 FIFA World Cup — activating vacant storefronts in key areas with retail, artist, and community-focused pop-ups, city leaders said this week. The KCMO-centered initiative — first announced in June and patterned…