31.08.2016

Ritchie takes Iron Planet

Auctioneer Ritchie Bros has acquired on line competitor Iron Planet for $740 million in cash and the assumption of unvested equity interests, taking the expected price to $785.5 million.

Iron Planet was founded by a Journalist at the Economist, Reza Bundy in 1999 after he moved to venture capital firm Kleiner Perkins Caufield & Byers (KPCB). The new auction house, inspired by E-bay, was also funded by Caterpillar, Komatsu and Volvo each of which invested between $5 and $10 million and agreed to sell their used equipment through the new venture.

The company is owned by KPBC, private equity firm Accel Partners, Caterpillar and Volvo. In 2014 it merged with Associated Auction Services, an alliance of Caterpillar and several of its dealers, that traded as Cat Auction Services. Last year it sold around $787 million worth of equipment.

Ritchie chief executive Ravi Saligram said: "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. Our commitment to diversifying our offerings is directly in line with customer demand for multiple selling and buying solutions.”

"This acquisition will help accelerate our growth in revenue and earnings and add shareholder value by continuing to expand our capabilities in new channels, sectors, regions and customer segments. Ritchie Bros. and IronPlanet both have talented teams and winning cultures built on a passion for serving customers."

Iron Planet chief executive Gregory Owens added: "This is an exciting day for IronPlanet, our customers, employees and shareholders. IronPlanet joining forces with Ritchie Bros. will allow the combined company to deliver a multi-channel marketplace that will provide a full range of equipment asset management and disposition solutions. IronPlanet has built a leading online marketplace and technology platform across a number of verticals, and when combined with Ritchie Bros.' strength in live onsite auctions, will prove to be a powerful combination in driving value for our customers."