Ritchie Bros to buy IAA in $7.3bn deal
Ritchie Bros. Auctioneers Inc.
$90.92
08:29 24/12/24
Canada’s Ritchie Bros Auctioneers has agreed to buy digital vehicle marketplace IAA in a $7.3bn deal.
Iaa Inc
$38.59
11:00 31/01/20
Under the terms of the transaction, IAA shareholders will receive $10.00 in cash and 0.5804 Ritchie Bros shares. This represents a premium of around 19% to the closing share price on Friday.
Ritchie Bros said the deal will diversify its customer base by providing the company with a significant presence in the vehicle remarketing vertical that has strong industry fundamentals with proven secular growth.
The company’s chief executive, Ann Fandozzi, said: "IAA accelerates our journey to become the trusted global marketplace for insights, services, and transaction solutions.
"Their highly complementary business in an adjacent vertical will allow us to unlock additional growth. Through our trusted brands, similar operating model, and complementary services, we expect to drive efficiencies and create a more resilient business."
The deal will create a leading global marketplace for commercial assets and vehicles with pro-forma gross transaction value of around $14.5bn for the last 12 months ended 30 September 2022, Ritchie Bros said.