Acquisition enhances reverse logistics services in U.S. and Canada
for large retailers, manufacturers and telecom firms
WASHINGTON--(BUSINESS WIRE)--Nov. 1, 2012--
Liquidity Services, Inc. (NASDAQ: LQDT), today announced it has acquired
National Electronics Service Association (NESA) in an all-cash
transaction. A Canadian provider of returns management, refurbishment
and reverse logistics services for high-value consumer products, NESA
provides expertise and focused services to Fortune 1000 companies in the
management of Consumer Electronics, Telecommunications and Information
Technology products.
The acquisition of NESA enhances Liquidity Services’ ability to deliver
large retailers and OEMs across Canada and the U.S. a full-service,
reverse logistics solution for consumer electronics and technology
products, including returns management, repair services and
multi-channel inventory disposition.
Headquartered in Toronto, Ontario, NESA establishes Liquidity Services’
first client service and distribution center in Canada and enables the
company to cross-sell services with existing and prospective clients in
both the U.S. and Canada. NESA’s current service offering is supported
by NESALive, a cloud based application that supports returns management,
repair and refurbishment services in hundreds of product categories,
including satellite TV boxes, laptops, game consoles, tablets, and
e-books.
"With the proliferation of technology causing complexity and shorter
life cycles across thousands of products, our comprehensive reverse
logistics solution, encompassing returns management, refurbishment and
multi-channel disposition and re-sale services, enables us to reduce
costs and increase recovery value for retailers and OEMs,” said Bill
Angrick, Chairman and CEO of Liquidity Services. “We are delighted to
add NESA’s experienced team and capabilities to our business and look
forward to providing NESA’s client base the opportunity to utilize our
existing multi-channel asset recovery services for surplus and
refurbished consumer electronics and technology products. The Liquidity
Services’ solution leverages over 2.2 million global buyers as well as
our experience completing the sale of over $3.0 billion in Gross
Merchandise Volume.”
"We are excited to join Liquidity Services and combine our respective
services to create a comprehensive reverse logistics solution for
electronic and technology products,” said Dominic Renda, President and
Founder of NESA. “Liquidity Services brings us a leading market
position, expertise and resources to help NESA reach the next level,
representing an even brighter future for our growth, innovation and
value for our clients and employees.”
Liquidity Services expects the deal to add approximately US$20 to US$25
million of annual Revenue and, excluding one-time deal expenses, to be
$0.02 to $0.03 cents accretive to its fiscal year 2013 earnings results.
Terms of the deal include an upfront payment of approximately CA$18
million in cash plus additional cash payments based on NESA’s future
revenues and earnings before interest, taxes, depreciation and
amortization (EBITDA) performance 24 to 36 months after closing.
About Liquidity Services, Inc.
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 $3.0 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 nearly 1,200 employees.
Additional information can be found at: http://www.liquidityservicesinc.com.
About National Electronics Service Association
NESA’s mission is to provide repair and warranty services for electronic
products, as well as refurbishment and re-manufacturing for a full range
of consumer and business electronic products. Founded in 1986 in
Toronto, NESA provides comprehensive reverse and forward logistics
solutions, procurement, repair, refurbishment and remanufacturing
services to leading electronics manufacturers, distributors and service
providers in Canada through a distributed national service network.
Located in Toronto, Ontario, NESA and its team of nearly 130 employees
are proud of their 26-year history of service excellence serving
corporate and consumer clients across Canada. Additional information can
be found at: www.nesacanada.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 2013 operating results. 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. 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
