Equipment auctioneer Ritchie Bros. has acquired used equipment and rental data specialist Rouse Services for approximately US$275 million.
With this acquisition, Ritchie Bros. intends to expand its data and service offering.
Ann Fandozzi, CEO of Ritchie Bros., said, “Data and analytics are fundamental building blocks to deliver great customer experiences in today’s world.”
She added, “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.”
Los Angeles based Rouse Services offers data intelligence and benchmarking products to help its customers make decisions.
Its subscription-based revenue is generated by three data-as-a-service (DaaS) offerings: rental analytics, equipment sales support, and fleet appraisals.
Rouse Services, which has approximately 60 employees, will continue to operate as usual and will maintain its physical presence in Los Angeles, California, for the foreseeable future.
Fandozzi said, “By working together, we will be able to help customers better understand used equipment trends and how to use them to optimise 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.”
Gary McArdle, Executive Vice President and COO of Rouse Services, said, “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 $250 million in cash and approximately $25 million in common stock of Ritchie Bros., subject to adjustment.
Completion of the acquisition is subject to customary closing conditions.