Ritchie Bros. acquires Rouse Services for $275 million
Ritchie Bros. Auctioneers and Rouse Services have entered into a definitive agreement under which Ritchie Bros. will acquire Rouse Services for approximately $275 million.
"Rouse offers a highly complementary suite of data and service products that will continue and accelerate our evolution from an auction company to a global, trusted marketplace and provider of services," said Ann Fandozzi, CEO of Ritchie Bros.
Rouse Services provides data intelligence and performance benchmarking solutions. Its subscription-based revenue is generated by three Data-as-a-service (DaaS) solutions: rental analytics, equipment sales support, and fleet appraisals. Rouse Services has approximately 60 employees and will continue to operate as-is and maintain its physical presence in Los Angeles, CA for the foreseeable future.
"I am personally very excited to join the Ritchie Bros. executive team," said Gary McArdle, Executive Vice President & Chief Operating Officer of Rouse Services. "We have spent decades building our reputation as a trusted partner in the industrial equipment industry. Opportunities to better serve our clients have always directed our growth, and by joining with Ritchie Bros., we see tremendous potential to build on our foundation and deliver even more value to our industry partners."
Under the terms of the transaction, Ritchie Bros. will acquire 100% of the equity of Rouse Services for approximately US$250 million in cash and approximately $25 million in common stock of Ritchie Bros., subject to adjustment.
"Data and analytics are fundamental building blocks to deliver great customer experiences in today's world," added Fandozzi. "Combining our unique perspectives will enable us to build new and innovative ways to serve our customers. We look forward to welcoming all the employees of Rouse Services into the Ritchie Bros. family."