Global equipment and vehicles auction powerhouse Ritchie Bros. has announced it will acquire the US company SmartEquip, an online platform providing customers with real-time service and diagnostic support, for $175mn.
Ritchie Bros. said it has entered into a definitive agreement with SmartEquip and the completion of the acquisition is subject to customary closing conditions, including, among other conditions, the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.
SmartEquip is a multi-manufacturer platform that provides customers with real-time service and diagnostic support, dynamically customised, via serial number, to each asset in their fleet, as well as enabling the electronic procurement of parts from OEMs and their dealers. The company supports approximately $1bn in annual transaction volume with more than 600 OEM brands, on behalf of fleet locations across North America, Europe and the Asia Pacific. SmartEquip has 60 employees and will continue to operate as a standalone business.
Ann Fandozzi, CEO, Ritchie Bros., said: “This acquisition furthers our goal of providing the best experience for our customers as we continue our transition from a traditional auctioneer to a marketplace for insights, services, and transaction solutions for commercial assets. SmartEquip will enable us to offer asset-specific, full-lifecycle parts and service support on behalf of our dealer and OEM partners to our buyers.”
Bryan Rich, SmartEquip’s executive chairman, said: “Ritchie Bros. is a perfect partner for us, with over 60 years of experience and a global footprint. Through their global customer base, this merger will accelerate SmartEquip’s ability to support its rapidly growing footprint across our joint global marketplaces and engaged customer base. At closing, the existing SmartEquip team, including all senior management, will transition over and participate in the next growth stage of the SmartEquip network.”
Under the terms of the transaction, Ritchie Bros. will acquire 100% of the equity of SmartEquip for approximately $175mn subject to adjustment.
Ritchie Bros. said the strategic rationale for the acquisition was that it would enables better customer and partner experience with the combination of SmartEquip and Ritchie Bros., and accelerate adoption of parts and service sales on behalf of its dealer and OEM partners by providing a seamless experience for end users
It is also expected to accelerates the execution of its strategy with the “highly complementary” acquisition building on Ritchie Bros.’ vision of becoming a trusted global marketplace for insights, services and transaction solutions for commercial assets
SmartEquip will also deepen IMS (inventory management system) connectivity and will further enable digital solutions at scale around inspections and ancillary services, while enabling better optimisation of search and advertising revenue streams.
