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 arts groups ‘left reeling’ after MO governor slashes millions from budget
Editor’s note: The following story was published by KCUR, Kansas City’s NPR member station, and a fellow member of the KC Media Collective. Click here to read the original story or here to sign up for KCUR’s email newsletter. [divide] Months after area arts and culture nonprofits saw a loss of funds from the National Endowment for the Arts, Gov.…
Transportation company’s move to consolidated HQ expected to bring 250 workers to KC site
Consolidating five locations into a single, state-of-the-art Kansas City campus means Master’s Transportation — a leading provider of commercial buses and vans — will relocate 130 Missouri employees to its new headquarters, with plans to expand to 250 by the end of the year, the company said. “This expansion reflects the company’s rapid growth and…
Inspiration took him to a dark space; why ‘Macbeth KC’ creator wants to trap audiences in a world with no heroes
An immersive experience set in a post-apocalyptic world — the brainchild of Kansas City artist and designer Keyon Monte — transforms an iconic Shakespearean tragedy into a warped, high-fashion human drama staged within a downtown coworking space. “Macbeth KC” removes the polish and distance often seen in adaptations of William Shakespeare’s works, said Monte, describing…
Marma launches sister brand to fit weight loss support with women’s health needs
Weight loss support wasn’t originally in the plans for Marma — the only OB-GYN and registered dietician-approved nutrition platform for women during their reproductive years — shared co-founder Meredith McAllister. But with the rise of GLP-1 medications, she and co-founder Victoria Weber saw the opportunity for a nourishing, evidence-based approach to weight loss support. In…