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Acquisition enhances Liquidity Services' position as the leading
reverse supply chain solution to Fortune 1000 corporations and expands
its growing capital assets marketplace
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GoIndustry DoveBid shareholders to receive 73 pence per share in
cash
WASHINGTON & LONDON--(BUSINESS WIRE)--May. 9, 2012--
Liquidity Services, Inc. (NASDAQ: LQDT) which provides leading
corporations, public sector agencies and buying customers the world's
most transparent, innovative and effective online marketplaces and
integrated services for surplus assets, today announced it has agreed to
acquire GoIndustry DoveBid, plc (GoIndustry), a global provider of
surplus asset management, auction and valuation services, for 73 pence
per share and assumed indebtedness, or total consideration of
approximately $31 million USD. The all-cash transaction is expected to
close on or about July 1, 2012 and is subject to regulatory and
GoIndustry shareholder approval, as well as other customary closing
conditions.
The acquisition of GoIndustry strengthens Liquidity Services’ leading
online marketplace for surplus capital assets by adding over 50 active
Fortune 1000 corporate clients and over 407,000 professional buyers. The
transaction expands Liquidity Services’ client roster with leading
global manufacturers across the aerospace, consumer packaged goods,
electronics, pharmaceutical, technology and transportation industry
verticals, including: BAE, Bosch, Covance, Ford-Europe, Honeywell,
Ingersoll-Rand, Pfizer, Renault , Visteon, and asset based lenders,
Barclays, HSBC, Lloyds, JP Morgan, PNC, RBS and Siemens Financial. The
deal improves Liquidity Services ability to serve corporate clients
globally by adding highly specialized sales, operations and valuations
teams in over 25 countries in North America, Europe and Asia that are
uniquely suited to bringing high-value capital assets to market for
leading multinational corporations.
“This strategic combination enhances the size and scale of our online
capitals asset marketplace in several key industry verticals and enables
us to serve our respective Fortune 1000 clients and buying customers
with the broadest array of innovative services and a truly global
footprint to maximize efficiency and financial recovery,” said Bill
Angrick, Chairman and CEO of Liquidity Services. “Our combined offering
will enable corporations to efficiently manage, value, redeploy and sell
surplus and idle equipment with a uniformly high level of service and
transparency throughout the globe in any asset class. Our complementary
strengths, unmatched buyer base and know-how clearly position Liquidity
Services as the trusted provider of choice for Fortune 1000 corporations
in the reverse supply chain.”
“The combination of GoIndustry DoveBid with Liquidity Services will
strengthen and expand our award-winning service offerings to large
corporations, while offering the best opportunities for our customers,
employees and shareholders,” said Jack Reinelt, CEO of GoIndustry
DoveBid.
During calendar year 2011, GoIndustry recorded approximately $211
million of gross merchandise volume.
Business Outlook
Liquidity Services expects the transaction to be neutral to fiscal year
2012 earnings and one to three cents per share accretive to fiscal 2013
results.
For further information regarding this transaction, please visit http://investor.liquidityservicesinc.com/phoenix.zhtml?c=195189&p=irol-presentations.
About Liquidity Services, Inc. (LQDT)
Liquidity Services, Inc. (NASDAQ: LQDT) provides leading corporations,
public sector agencies and buying customers the world's most
transparent, innovative and effective online marketplaces and integrated
services for surplus assets. On behalf of its clients, Liquidity
Services has completed the sale of over $2.6 billion of surplus,
returned and end-of-life assets, in over 500 product categories,
including consumer goods, capital assets and industrial equipment. The
company is based in Washington, D.C. and has approximately 760
employees. Additional information can be found at: http://www.liquidityservicesinc.com.
Forward-Looking Statements
This document contains forward-looking statements made pursuant to the
Private Securities Litigation Reform Act of 1995, including, without
limitation, statements regarding the potential benefits, impact on
fiscal 2012 and 2013 operating results and the expected closing date of
the acquisition of GoIndustry by Liquidity Services. The outcome of the
events described in these forward-looking statements is subject to known
and unknown risks, uncertainties and other factors that may cause our
actual results to differ materially from any future results expressed or
implied by these forward-looking statements. You can identify
forward-looking statements by terminology such as "expects," or the
negative of these terms or other comparable terminology. We cannot
guarantee future results, levels of activity, performance or
achievements. There are a number of risks and uncertainties that could
cause our actual results to differ materially from the forward-looking
statements contained in this document. Such factors, among others,
include, but are not limited to, potential failure to obtain shareholder
or regulatory approval for the GoIndustry acquisition or to satisfy
other conditions to the acquisition on the proposed terms and within the
proposed timeframe; the inability to realize expected benefits or
synergies from the acquisition in the amounts or in the timeframe
anticipated; and difficulties relating to integration matters. In
addition, important factors that could cause our actual results to
differ materially from those expressed as forward-looking statements are
set forth in the Company's Annual Report on Form 10-K for the fiscal
year ended September 30, 2011, including, but not limited to, those set
forth in Part I, Item IA (Risk Factors). There may be other factors of
which we are currently unaware that may cause our actual results to
differ materially from the forward-looking statements. All
forward-looking statements apply only as of the date of this document
and are expressly qualified in their entirety by the cautionary
statements included in this document. Except as may be required by law,
we undertake no obligation to publicly update or revise any
forward-looking statement occurring after the date of this document.
Source: Liquidity Services, Inc.
Liquidity Services, Inc.
Julie Davis, 202-558-6234
julie.davis@liquidityservicesinc.com
