CARMEL, Ind., Sept. 8, 2020 /PRNewswire/ -- KAR Auction
Services, Inc., d/b/a/ KAR Global (NYSE: KAR) has signed a
definitive agreement to acquire BacklotCars Inc., subject to
certain regulatory approvals and other customary closing
conditions. 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. The acquisition will also build on the
successful foundation of the company's TradeRev auction platform
and provide dealers with greater choice, enhanced transparency, and
access to an expanded buyer and seller population.
"KAR has led the digital transformation of the remarketing
industry for over a decade, and we're 100% committed to providing
dealers with the best, most advanced platforms to sell and source
inventory," said Jim Hallett,
Chairman and CEO of KAR. "BacklotCars has grown rapidly in the
highly competitive dealer-to-dealer space and is the perfect
complement to our current capabilities and footprint. 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
BacklotCars was founded in 2015 in Kansas City and currently serves dealers in 46
states across the United States.
The company's technology platform and marketplace were specifically
designed to address dealer pain points associated with digital
transactions such as certified inspections and integrated
transportation and dealer financing options. The platform allows
buyers the flexibility to engage when and where they want, and
provides full transparency between buyers, sellers and bidders.
BacklotCars' artificial intelligence and machine learning
capabilities further simplify the buying experience by delivering
personalized vehicle recommendations to each individual buying
After the transaction closes, key BacklotCars leadership
including co-founders 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.
"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, co-founder and CEO of BacklotCars.
"We're excited to expose Backlot sellers' inventory to 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."
The purchase price of the acquisition is $425 million and the transaction is expected to
close prior to year-end pending the requisite legal and regulatory
approvals. Guggenheim Securities, LLC is acting as exclusive
financial advisor to KAR Global and Winston & Strawn LLP is
serving as legal advisor. Evercore is acting as exclusive financial
advisor to BacklotCars and Stinson LLP is serving as legal
KAR Global will host an investor call regarding this transaction
on September 8, 2020, at 11:00 a.m. (EDT) which can be accessed via the
Audioconference: (844) 778-4145, Conference ID: 5445567
KAR Global investor relations page:
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
Mexico, U.K. and Europe. For more information and the latest
KAR Global news, go to www.karglobal.com and follow us on Twitter
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 without having to go to physical auctions.
The company's end to end solution is truly seamless for dealers as
BacklotCars provides vehicle inspections, transportation, and
inventory finance services.
This press release includes certain statements that may be
deemed to be "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995 and are intended
to be covered by the safe harbor provisions thereof. All
statements, other than statements of historical facts, included in
this press release that address activities, events or developments
that we expect, believe or anticipate will or may occur in the
future, are forward-looking statements. Forward-looking statements
are not guarantees of future performance and we caution you not to
place undue reliance on such statements. Forward-looking statements
are generally identifiable by the use of the words "may," "will,"
"should," "expect," "anticipate," "estimate," "believe," "intend,"
"project," "continue," or the negative of these words, or other
similar words or terms.
Forward-looking statements contained in this press release are
subject to a number of risks and uncertainties, many of which are
beyond our control, that may cause our actual results, performance
or achievements to be materially different from future results,
performance or achievements expressed or implied by forward-looking
statements made by us. Factors and risks to our business that could
cause actual results to differ from those contained in the
forward-looking statements are described in our filings with the
Securities and Exchange Commission. These risks and uncertainties
include, but are not limited to, potential risks and uncertainties
relating to the novel coronavirus (COVID-19).
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SOURCE KAR Global