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 Tech Council celebrates tax fix in Trump’s ‘One Big Beautiful Bill’ that boosts growing businesses
A tax fix included in the recently signed “One Big Beautiful Bill” — sprawling legislation meant to overhaul taxes in the United States — marks a major win for Kansas City’s tech and innovation economy, said Kara Lowe. At issue: a long-awaited change to Section 174 research and development expensing that now allows businesses to…
Crossroads distillery asks KC to make a toast in honor of founder lost in weekend motorcycle wreck
Update: A crowdfunding campaign has been launched to support the family of the late Jeff Evans. Click here to learn more or to donate. [divide] With doors temporarily closed early this week (July 21-22) to mourn the loss of co-founder Jeff Evans, the team behind Mean Mule Distilling is asking its community to “grieve with…
KC govtech startup: You shouldn’t have to know how local government works to get answers (or make impact)
Even a ripple can make waves, said Mitch Mabrey, an exited cleantech founder whose new cause finds him on a mission to ensure that the voices of residents from all walks of life are more broadly heard — and answered — by their government officials. Resonus, his Kansas City-based political information platform is designed to…