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
Couple injects $1M ‘financial good’ from RxSS exit to startup special needs initiative; they hope it’s a blueprint for KC
Michael and Brandy Rea built and successfully exited one of Kansas City’s fastest-growing health tech companies. Now the Rx Savings Solutions founders share a new prescription for impact: creating inclusive housing for adults with disabilities. Shifting from entrepreneurship to philanthropy, the Michael and Brandy Rea Family Foundation contributed a $1 million lead gift to support…
How this reality TV show helps competing entrepreneurs find their people — not just adversaries
It’s five days, 14-hour workdays, and one intense experience aimed at helping entrepreneurs sharpen their businesses. The setup for The Blox — a startup-focused reality TV competition and bootcamp — is crafted to immerse builders in the rigors of real-world business, said Weston Bergmann. Season 17 of the live-in competition show launched in June, emphasizing…
C2FO named top fintech by CNBC; leaders celebrate win, pushing toward $500B funding milestone
A Kansas City fintech’s award-winning efforts to boost working capital access for businesses across the globe not only has built trust among the world’s top enterprises, said Sandy Kemper; it’s positioned C2FO for even greater impact as it transforms the financing landscape for previously overlooked ventures. The company was honored this month as one of…