Liquidity Services, Inc. to Acquire UK-based Geneva Group
WASHINGTON - Liquidity Services, Inc. (LSI), a leading online auction marketplace for wholesale, surplus and salvage assets, today announced it has agreed to acquire the Geneva Group, including Geneva Industries Ltd., Willen Trading Ltd., and Geneva Auctions Ltd. for approximately $17.0 million in cash and contingent earn-out payments worth up to an aggregate of approximately $2.9 million payable over the next three years. The Geneva Group is a leading United Kingdom (UK) based remarketer of reverse supply chain merchandise, including customer returns and overstock merchandise. The Geneva Group serves leading UK retailers and manufactures with a product focus on consumer electronics, technology equipment and hard goods general merchandise.
The acquisition will strengthen LSI’s business by adding Geneva’s longstanding seller relationships in the European Union (EU) with significant organic growth opportunities, as well as a complementary buyer network of UK based wholesalers and EU exporters developed over the last 18 years. Geneva’s buyer base will augment LSI’s marketplace by adding untapped international demand for consumer electronics and general merchandise. Geneva brings to LSI strong industry knowledge and proven expertise in asset merchandising and remarketing of reverse supply chain goods.
“We believe the acquisition of the Geneva Group will enhance our business by enabling us to better serve existing customers in the U.S. with EU operations as well as provide us a strong platform to grow internationally.” said Bill Angrick, Chairman and CEO of LSI. “In turn, we believe that Geneva’s current sellers and buyers will benefit from LSI’s e-commerce platform, corporate infrastructure and innovative value added services to increase revenues and reduce costs.”
The acquisition is expected to close within the next 90 days and is subject to customary closing conditions and post-closing purchase price adjustments related to working capital items.
LSI expects the transaction to add approximately $23 million in revenues and one to two cents per share to its fiscal year 2009 results.
About Liquidity Services, Inc. (LQDT)
Liquidity Services, Inc. (NASDAQ:LQDT) and its subsidiaries enable corporations and government agencies to market and sell surplus assets and wholesale goods quickly and conveniently using online auction marketplaces and value-added services. The company is based in Washington, D.C. and has 650 employees. Additional information can be found at: www.liquidityservicesinc.com.
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