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Wednesday, 09 September 2020 18:21

$425M Exit: BacklotCars Selling to Indiana-Based Auto Marketplace in ‘Milestone Event’ for KC

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$425M Exit: BacklotCars Selling to Indiana-Based Auto Marketplace in ‘Milestone Event’ for KC BacklotCars

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Five years after turning its ignition, Kansas City-revved BacklotCars is being acquired in a historic $425 million deal.

Carmel, IN-based KAR Auction Services agreed to purchase the company by the end of the year, the companies said Sept. 8.

 

“KAR Global is the most innovative and progressive digital remarketing company in the world, and their entrepreneurial roots and culture are a great match for BacklotCars,” said Justin Davis, CEO of BacklotCars, a web-based, dealer-to-dealer automotive platform, calling the exit a “milestone event” for the Kansas City ecosystem.

 

Davis and his fellow BacklotCars’ co-founders Ryan Davis, Josh Parsons and Fabricio Solanes will maintain their positions, the companies said.

 

Founded in 2014, BacklotCars 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. 

 

Since its inception, BacklotCars has expanded its geographic footprint from the Kansas City region to now serving dealers across 46 states. It has scaled its operations and marketplace, leveraging technology to deliver upon the mission of making wholesale easy, the company said.

 

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.


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