Ritchie Bros. to acquire IronPlanet
IronPlanet sold $787 million in vehicles in 2015.
Ritchie Bros. Auctioneers Incorporated, the world’s largest industrial auctioneer, and IronPlanet, a leading online marketplace for used heavy equipment and other durable asset sales, have entered into an agreement under which Ritchie Bros. will acquire IronPlanet for approximately US$758.5 million, subject to customary closing adjustments.
Founded in 1999, IronPlanet complements Ritchie Bros.’ primarily end-user customer base, as it focuses largely on the needs of corporate accounts, equipment manufacturers, dealers and government entities in equipment disposition solutions. It conducts its sales primarily through online-only platforms, with weekly online auctions and in other equipment marketplaces.
IronPlanet, a private company based in the United States, sold approximately US$787 million of Gross Merchandise Value (GMV) through their sales channels during 2015, and has achieved a 25.2% compounded growth rate in assets sold from 2013 through 2015. This growth momentum has continued, with a 41% increase in GMV during the first half of 2016 relative to the same period in 2015.
“This transformative transaction is the logical next step for Ritchie Bros., building on our multi-channel platform, global reach and long-standing customer relationships. Together with IronPlanet, we will create a combined company of trusted brands with the ability to provide customers around the world with a greater number of choices and platforms to sell, buy and list equipment when, where and how they want – whether onsite or online,” said Ravi Saligram, Chief Executive Officer of Ritchie Bros.