Young, yet well-established BacklotCars has been acquired by KAR Auction Services in a deal worth $425 million.
Headquartered in Kansas City, Mo., BacklotCars began serving dealers in 2015 through its app and web-based dealer-to-dealer wholesale platform.
In its short five years of operation, the Kansas City company expanded its footprint to serve dealers in 46 states.
Announcement of the acquisition deal was released Tuesday, the transaction expected to close by the end of 2020.
KAR Auction Services, under KAR Global, is located in Indiana and operates as an automotive remarketing and technology solutions provider in North America and Europe.
The transaction will combine both companies’ services, merging KAR Global’s physical and digital-used car marketplaces with BacklotCars’ online dealer-to-dealer marketplace for wholesale used cars.