KAR Global to Acquire BacklotCars for $425M

KAR Auction Services, Inc., d/b/a KAR Global (NYSE: KAR) has reached a definitive agreement to acquire BacklotCars for $425M. KAR Global is a leading automotive remarketing and technology solutions provider in North America and Europe. The transaction, which is subject to regulatory approval and customary closing conditions, will combine KAR Global’s portfolio of physical and digital used car marketplaces with BacklotCars’ online dealer-to-dealer marketplace for wholesale used cars.

Since its inception in 2015, BacklotCars has expanded its geographic footprint from the Kansas City region to serving dealers across 46 states. BacklotCars has scaled its operations and marketplace, leveraging technology to deliver upon the mission of making wholesale easy. 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.

The acquisition marks one of the largest for Kansas City’s startup ecosystem. Co-founders Justin Davis (CEO), Josh Parsons (COO), Ryan Davis (CSO) and Fabricio Solanes (CTO) will continue in their leadership roles at BacklotCars, and KAR intends to continue operating BacklotCars’ Kansas City headquarters location.

Evercore acted as exclusive financial advisor to BacklotCars and Stinson LLP served as legal advisor. Guggenheim Securities, LLC acted as exclusive financial advisor to KAR Global and Winston & Strawn LLP as KAR’s legal advisors. Investors of BacklotCars include Stripes, Origin Ventures, Pritzker Group Venture Capital, Royal Street Ventures and KCRise Fund.

About BacklotCars

Based in Kansas City, MO, BacklotCars is a leading online marketplace for auto dealers. Through BacklotCars, auto dealers, auto finance and rental car companies can transact 100% online. The company's end to end solution is truly seamless for dealers as BacklotCars provides vehicle inspections, transportation, and inventory finance services.

About KAR Global

KAR Auction Services, Inc. d/b/a KAR Global (NYSE: KAR), provides sellers and buyers across the global wholesale used vehicle industry with innovative, technology-driven remarketing solutions. KAR Global's unique end-to-end platform supports whole car, financing, logistics and other ancillary and related services, including the sale of nearly 3.8 million units valued at approximately $40 billion through our auctions in 2019. Our integrated physical, online and mobile marketplaces reduce risk, improve transparency and streamline transactions for customers in more than 80 countries. Headquartered in Carmel, Indiana, KAR Global has employees across the United States, Canada, Mexico, U.K. and Europe. For more information and the latest KAR Global news, go to www.karglobal.com and follow us on Twitter @KARspeaks.

CONTACT: press@backlotcars.com

© BacklotCars 2020

Technology startup’s exit is milestone event for Kansas City ecosystem