By Joe Overby
Sr. Editor, Auto Remarketing
CARY, N.C. – There were only so many specifics KAR Global’s executive leadership could provide, pending regulatory approvals, but a conference call Tuesday with the investment community offered a glimpse into the strategy behind KAR’s agreement to buy BacklotCars for $425 million and what the dealer-to-dealer online auction platform may bring to the company.
First, the basics.
KAR announced Tuesday it has reached a deal to purchase BacklotCars, an online dealer-to-dealer wholesale platform, for $425 million. The purchase is subject to certain regulatory approvals and other customary closing conditions.
Assuming those conditions are met, KAR expects the deal to close by the end of the year. Once it does, BacklotCars’ core leadership, including its four co-founders, will continue on with the company. KAR also plans to keep the company’s headquarters in Kansas City, Mo., where it was founded in 2015. Justin Davis is the chief executive officer of BacklotCars and one of its co-founders.
In Tuesday’s release, Davis said: “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.
Read the complete article on autoremarketing.com (behind paywall).