Ritchie Bros. and IronPlanet entered into an agreement under which Ritchie Bros. will acquire IronPlanet for approximately $758.5 million, subject to customary closing adjustments.

Founded in 1999, IronPlanet complements Ritchie Bros.’ primarily end-user customer base, as it focuses largely on the needs of corporate accounts, equipment manufacturers, dealers and government entities in equipment disposition solutions.  It conducts its sales primarily through online-only platforms, with weekly online auctions.

IronPlanet, a private company based in the U.S., sold approximately $787 million of gross merchandise value through its sales channels during 2015, and has achieved a 25.2% compounded growth rate in assets sold from 2013 through 2015.  This growth momentum has continued, with a 41% increase in GMV during the first half of 2016 relative to the same period in 2015.

“This transformative transaction is the logical next step for Ritchie Bros., building on our multi-channel platform, global reach and long-standing customer relationships,” said Ravi Saligram, CEO of Ritchie Bros. “Together with IronPlanet, we will create a combined company of trusted brands with the ability to provide customers around the world with a greater number of choices and platforms to sell, buy and list equipment when, where and how they want – whether onsite or online.”

“This is an exciting day for IronPlanet, our customers, employees and shareholders,” said Gregory J. Owens, chairman and CEO of IronPlanet. “IronPlanet joining forces with Ritchie Bros. will allow the combined company to deliver a multi-channel marketplace that will provide a full range of equipment asset management and disposition solutions.”

In addition to the acquisition of IronPlanet, Ritchie Bros. also entered into a strategic alliance with Caterpillar.

Under the terms of the agreement, Ritchie Bros. will become Caterpillar’s preferred global partner for live onsite and online auctions with respect to used Caterpillar equipment, and will complement Caterpillar’s existing dealer channels.  Ritchie Bros. will provide Caterpillar and its dealers with access to proprietary auction platforms, software and other value-added services.

“Ritchie Bros. is proud to enter into this historic alliance, which will strengthen our relationship with Caterpillar, its dealers and end users, as well as help expand our global reach and footprint,” Saligram said. “Our marketing capabilities, unrivaled suite of technology and powerful multi-channel transactional platforms will add tremendous value and make us a trusted strategic partner to the Caterpillar family.”

The strategic alliance between Ritchie Bros. and Caterpillar will have an initial five-year term. After completing the acquisition of IronPlanet, Ritchie Bros. will operate live onsite auctions at participating Caterpillar dealers’ locations under the Cat Auction Services brand and also encompass Ritchie Bros.’ other onsite and online brands.