VANCOUVER, B.C. – Equipment auction giant Ritchie Bros. is acquiring U.S. data intelligence provider Rouse Services for US$275 million in a cash-and-stock deal, the two companies announced after market closing Thursday.
Under the terms of the transaction, Ritchie Bros. will buy 100% of the equity of Rouse Services for $250 million in cash and $25 million in common stock of the auctioneer, subject to adjustment.
“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, chief executive officer of Ritchie Bros.
“Rouse brings a strong reputation within the industrial equipment industry for their data integrity, reliability and strict confidentiality, and we look forward to continuing to build on these core values in the next chapter of their growth.”
She said by working together, the two companies will be able to help customers better understand used equipment trends, and how to use them to optimize fleet management decisions.
“Bringing Rouse into the Ritchie Bros. family of solutions increases connectivity and deepens our already strong relationships with fleet owners and asset-backed lenders,” Fandozzi added.
Rouse Services provides data intelligence and performance benchmarking solutions that help customers make better decisions.
Its subscription-based revenue is generated by three data-as-a-service (DaaS) solutions: rental analytics, equipment sales support and fleet appraisals.
The company has about 60 employees and will continue to operate as-is, and maintain its physical presence in Los Angeles, Calif., for the foreseeable future, Ritchie Bros. said.
Gary McArdle, executive vice-president and chief operating officer of Rouse Services will join the Ritchie Bros. executive team as part of the deal.
“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,” he said.
It is the first major acquisition by Ritchie Bros. since Fandozzi was appointed CEO last December.
The deal is subject to customary closing conditions.
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