Liquidity Services strengthens its global platform for equipment buyers and sellers by acquiring Machinio, enhancing scale, services, and channels for used equipment listings.

Overview

Liquidity Services, a global leader in the reverse supply chain, has significantly expanded its equipment marketplace through the acquisition of Machinio, a prominent online platform for used equipment listings. This strategic move aims to enhance Liquidity Services’ scale, services, and channels, offering greater value to equipment buyers and sellers worldwide.

Strengthening the Global Equipment Marketplace

Machinio brings to the table a robust marketplace with over 1.2 million assets valued at more than $25 billion. With 10 million annual website visits across 190 countries, Machinio’s platform integrates seamlessly into Liquidity Services’ extensive network. This expansion not only broadens the reach of used equipment listings but also provides sellers with advanced analytics tools to optimize their business operations.

Enhanced Services and Channels

The acquisition allows Liquidity Services to offer an expanded portfolio of solutions to its commercial and government customers. Machinio’s suite of services includes:

Annual recurring subscriptions for over 2,200 dealers, brokers, and suppliers
Proprietary technology and data management tools for efficient inventory sales
A mobile-first approach connecting buyers with global equipment suppliers

These offerings are set to maximize asset recovery and expand the buyer network, fostering a more dynamic and efficient marketplace.

Global Integration and Future Growth

Under the leadership of CEO Bill Angrick, Liquidity Services plans to leverage its global experience to accelerate Machinio’s growth. Machinio, based in Chicago and Berlin, will continue operating under its existing branding and management, ensuring a smooth transition and continued customer satisfaction.

Financial Details of the Acquisition

The acquisition deal is valued at approximately $20 million, comprising $18 million in cash and $2 million in restricted stock to Machinio’s executives. Additionally, up to $5 million may be payable based on financial performance targets for 2019. This structured deal underscores the commitment of Liquidity Services to integrate and grow Machinio’s successful platform.

Impact on the Market

Liquidity Services’ move is expected to be dilutive to fiscal year 2018 GAAP earnings per share, but will turn accretive in 2019. The acquisition positions Liquidity Services to dominate the used equipment marketplace by enhancing its transaction volume and recurring revenue streams.

“Together, we will continue to enhance our platform and services to meet the needs of global sellers and buyers of used equipment,” said Dmitriy Rokhfeld, President of Machinio.

Conclusion

The acquisition of Machinio by Liquidity Services marks a significant milestone in the global equipment marketplace, promising expanded reach, improved services, and increased efficiency for buyers and sellers alike. This strategic expansion reinforces Liquidity Services’ position as a leader in the reverse supply chain, driving the future of used equipment commerce.

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