Ritchie Bros. said it will acquire AssetNation, Inc., an online marketplace and solutions provider for surplus and salvage assets. Ritchie Bros. intends to use the acquisition to launch new services for equipment owners whose buying and selling preferences may not be met by its live unreserved auctions. It will continue to grow AssetNation’s core business as well as to leverage their e-commerce expertise and technology platform.
AssetNation is active in a number of industry verticals including energy, fleet and distribution, insurance and government. AssetNation is a privately held company headquartered in Houston, Texas, with offices in Pittsburgh, Pa.; Mexico City; and London.
“We are very excited to be welcoming AssetNation into the Ritchie Bros. family. Our values are aligned and we share the same passion for bringing fairness and transparency to the equipment market,” said Ritchie Bros. Chief Executive Officer Peter Blake. “Our success in building the world’s largest equipment auction company through our flagship unreserved auctions has given us a unique understanding of the world’s equipment owners.
“We intend to leverage [our] market knowledge and the power of our brand not only to fuel the growth of AssetNation’s business, but also to develop additional solutions that will expand our addressable market and help us meet the diverse and evolving preferences of a segment of the equipment market that we have not traditionally reached with our unreserved auctions,” said Ritchie Bros. CEO Peter Blake.”
Ritchie Bros. said it intends to expand its service offering and provide a transparent and efficient way for the nonauction segment of the market to buy and sell equipment. The new services will not be auction services and will align with Ritchie Bros.’s mission to create compelling business solutions that enable the world’s builders to easily and confidently exchange equipment.
“We believe that adding AssetNation’s best-in-class technology and deep e-commerce expertise and leveraging those strengths to develop exciting new services will allow us to build on our position as the world’s largest seller of used heavy equipment and trucks and to attract new customers,” added Mr. Blake. “We believe this initiative will increase shareholder value by enabling us to create compelling complementary solutions and effectively double our addressable market.”
“In addition to facilitating the development and launch of our new services, the acquisition is also expected to generate growth for our core unreserved auction business,” stated Mr. Blake. “Many of AssetNation’s customer relationships exist in industry verticals that are complementary to Ritchie Bros.’ core business, particularly in the energy, fleet and distribution, insurance and government sectors. We believe that a combined service offering will satisfy the needs of these customers more effectively.”
Ritchie Bros. has agreed to acquire 100% of the issued and outstanding shares of AssetNation in an all cash deal valued at approximately $64 million. The transaction is expected to close on or about May 15, 2012, and is subject to customary closing conditions. The transaction will be funded mainly by bank debt and is expected to have an immaterial impact on Ritchie Bros. financial results in 2012 and 2013.