KAR Auction Services, Inc. has signed a definitive agreement to acquire BacklotCars Inc., 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.
BacklotCars’ 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, according to KAR.
“BacklotCars has grown rapidly in the highly competitive dealer-to-dealer space and is the perfect complement to our current capabilities and footprint.” said Jim Hallett, Chairman and CEO of KAR. “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.”
The acquisition builds on the company’s TradeRev auction platform and provide dealers with greater choice, enhanced transparency, and access to an expanded buyer and seller population, according to KAR.
BacklotCars currently serves dealers in 46 states across the United States, the company said. The platform allows buyers the flexibility to engage when and where they want, and provides full transparency between buyers, sellers and bidders.
The transaction is expected to close prior to year-end pending the requisite legal and regulatory approvals.