KAR Global announced a definitive agreement to acquire BacklotCars Inc. According to a KAR Global, the deal is still subject to certain regulatory approvals and other customary closing conditions before it can be made official. The purchase price of the acquisition is totaled at $425 million with the pending transaction set to close year-end pending legal regulatory approvals.
BacklotCars is an online dealer-to-dealer wholesale platform, offering a 24-7 “bid-ask” marketplace and comprehensive vehicle inspections. The company is headquartered in Kansas City and serves dealers in 46 states across the United States. The company’s technology capabilities simplify digital transactions and enhance the buying experience through AI and machine learning technology.
“BacklotCars has grown rapidly in the highly competitive dealer-to-dealer space and is the perfect complement to our current capabilities and footprint,” said KAR Chairman and CEO Jim Hallet in a press release. “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.”
KAR Global was unable to elaborate beyond what was stated in the press release due to the deal still being in the works and pending approval. The company did confirm that BacklotCars would be retaining all key leadership figures including co-founders Justin Davis, Ryan Davis, Josh Parsons, and Fabricio Solanes. Kars will also keep the headquarters of the Kansas City-based company in its current location.
“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 Davis, co-founder and CEO of BacklotCars. KAR’s active buyer base while expanding buyer access to quality wholesale inventory beyond their respective local markets. We look forward to completing the transaction and leveraging the power of our combined technology solutions and industry expertise to help our companies and our customers succeed.”
Once the deal is complete, BacklotCars will add to an already impressive collection of digital marketplaces at KAR. Throughout the last few years, the company has acquired platforms such as TradeRev, DRIVIN, CarsOnTheWeb, and OPENLANE.
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