Houlihan Lokey Advises SmartEquip

Transaction: Houlihan Lokey Advises SmartEquip

Houlihan Lokey is pleased to announce that SmartEquip has been acquired by Ritchie Bros. Auctioneers (NYSE:RBA and TSX:RBA). The combination will accelerate SmartEquip’s global expansion among construction equipment manufacturers and owners. The transaction closed on November 2, 2021.

SmartEquip is a multi-manufacturer platform that provides customers with real-time service and diagnostic support, dynamically customized via serial number, to each asset in their fleet, enabling the electronic procurement of parts from OEMs and their dealers. The company supports approximately $1 billion in annual transaction volume with more than 600 OEM brands on behalf of fleet locations across North America, Europe, and the Asia-Pacific.

Ritchie Bros. is a global asset management and disposition company, offering customers end-to-end solutions for buying and selling used heavy equipment, trucks, and other assets in numerous industries, including construction, transportation, agriculture, energy, oil and gas, mining, and forestry.

The strategic rationale for the acquisition is that it will:

  • Enable Better Customer and Partner Experience – The combination of SmartEquip and Ritchie Bros. will enable and accelerate the adoption of parts and service sales on behalf of Ritchie’s dealer and OEM partners by providing a seamless experience for end users.
  • Accelerate the Execution of Ritchie’s Strategy – This highly complementary acquisition builds on Ritchie Bros.' vision of becoming a trusted global marketplace for insights, services, and transaction solutions for commercial assets.
  • Deepen IMS Connectivity – SmartEquip will deepen IMS (inventory management system) connectivity and will further enable digital solutions at scale around inspections and ancillary services while enabling better optimization of search and advertising revenue streams.

Houlihan Lokey served as the exclusive financial advisor to SmartEquip and assisted in marketing, structuring, and negotiating the transaction on behalf of the company. This transaction marks yet another advisory engagement in the broader supply chain and industrial software market and further enhances the Houlihan Lokey Technology team’s extensive track record in the sector.

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