KAR Acquires BacklotCars Inc.

By Staff Writer September 09, 2020

 

KAR Auction Services Inc. has signed a definitive agreement to acquire BacklotCars Inc. for $425 million.

BacklotCars is an app and web-based dealer-to-dealer wholesale platform featuring a 24/7 “bid-ask” marketplace and comprehensive vehicle inspections performed by automobile mechanics. Upon closing, the acquisition will further diversify KAR’s broad portfolio of digital capabilities and accelerate the company’s strategy to be a leading digital dealer-to-dealer marketplace provider.

“I’m confident the addition of Backlot’s leadership, technology, and exceptional customer-service model will quickly benefit our combined customers, enhance KAR’s competitive position and accelerate growth for both organizations,” said Jim Hallett, chairman and CEO of KAR.

BacklotCars was founded in 2015 in Kansas City and currently serves dealers in 46 states across the United States.

After the transaction closes, key BacklotCars leaders like Justin Davis, Ryan Davis, Josh Parsons and Fabricio Solanes will remain with the company, and KAR intends to continue operating BacklotCars’ Kansas City headquarters location.

The transaction is expected to close prior to year-end pending the requisite legal and regulatory approvals.

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Last modified on Monday, 14 September 2020 13:57

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