WASHINGTON (AP) — Liquidity Services Inc. said on Wednesday that it has agreed to acquire TruckCenter.com, an online auction site for commercial trucks and transportation equipment, for as much as $18 million in cash.
Liquidity Services, which operates a marketplace where businesses and government clients trade surplus assets, said it will make an upfront payment of $9 million. The Washington-based company will make additional payments of up to $9 million based on TruckCenter.com's revenue and earnings before interest, taxes, depreciation and amortization, within 24 months after the deal's closure. The transaction is expected to close next month.
TruckCenter.com's client list includes such companies as GE Capital, Bank of America and Wal-Mart.
The privately held company will operate as part of Liquidity Services' Commercial Asset Recovery Division.
Liquidity Services said the acquisition will strengthen its business in the transportation industry, adding more than 200 new commercial sellers of trucks and other transportation assets. TruckCenter.com operates five vehicle storage facilities nationwide. Auctions are conducted on-site at those locations, and online.
Liquidity Services said it expects the deal to add about $50 million in gross merchandise volume per year. Excluding one-time deal expenses, the acquisition is expected to be neutral to the company's fiscal 2011 earnings, and add 2 cents per share to fiscal 2012 results.
Shares of Liquidity Services rose 34 cents, or about 1.8 percent, to $19.02 in morning trading.
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