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
Open Doors: Here’s how KCMO plans to turn empty storefronts into a World Cup stage for local talent
Applications are now open for grants of up to $10,000 for businesses and artists who want to activate underutilized or vacant commercial spaces in the downtown area during the coming FIFA World Cup to showcase Kansas City’s entrepreneurial spirit. Funds awarded through the just-detailed Open Doors! Program — crafted through a partnership between the City…
He took over a house-trained side hustle; meow it’s time scale the gourmet catnip brand
Adam Larson might be severely allergic to cats, but he’s following his own advice — pawing away at a gourmet catnip side hustle and toying with the best market fit for the business (and his life). Larson — who also is a network convener for MOSourceLink, the founder Decimal Projects, and a former program coordinator at…
How Main Street Summit is putting homegrown small business on stage with Tim Tebow
COLUMBIA, Missouri — Small businesses don’t stay small on purpose, said Colby Kraus, echoing a mantra popular among organizers of the Main Street Summit — an immersive downtown experience rich with enough Americana capital for entrepreneurs and community builders from all walks of life. Approaching its third year, Main Street Summit is set to return Nov.…
ICYMI: MTC says it’s moving forward with select entrepreneur programs despite steep state funding cuts
Editor’s note: This story was originally published by Missouri Business Alert, a member of the Kansas City Media Collective, which also includes Startland News, KCUR 89.3, American Public Square, Kansas City PBS/Flatland, and The Kansas City Beacon. Click here to read the original story. [divide] The Missouri Technology Corp. has released its annual implementation plan, announcing which programs…