Acquisition Broadens and Diversifies LSI’s Marketplace by Adding a European Base of Commercial Buyers and Sellers
WASHINGTON–(BUSINESS WIRE)–May 6, 2008–Liquidity Services, Inc.
(LSI), a leading online auction marketplace for wholesale, surplus and
salvage assets, announced it has completed the acquisition of the
Geneva Group, including Geneva Industries Ltd., Willen Trading Ltd.,
and Geneva Auctions Ltd. (Stock Auctions) for approximately $17.2
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 final purchase price is based on purchase price adjustments
as outlined in the purchase agreement. 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 manufacturers with a
product focus on consumer electronics, technology equipment and hard
goods general merchandise. The effective date of the closing is May 1,
2008.
“This acquisition strengthens 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,” said Bill Angrick, Chairman and CEO of LSI.
“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.”
“The Geneva Group will benefit greatly from LSI’s expertise in
managing and reselling goods flowing through the reverse supply chain,
paving the way for solid growth in the European market. Through the
sharing of technology and best practices, together we will be able to
better serve our sellers and buyers,” said David Jacobs, President of
the Geneva Group.
LSI expects the transaction to add approximately $8.0 million in
revenues and to be neutral to earnings in its fiscal year 2008
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 670 employees. Additional information can be
found at: www.liquidityservicesinc.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 and
impact on our fiscal 2008 operating results of our acquisition of the
Geneva Group’s business. 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 include our ability to integrate the Geneva Group into our
existing operations, continue the Geneva Group’s seller relationships
and buyer network and realize expected benefits of the acquisition, as
well as the factors set forth in the Company’s Annual Report on Form
10-K for the year ended September 30, 2007, including, but not limited
to, those set forth in Part I, Item IA (Risk Factors) as well as our
other filings from time to time with the Securities and Exchange
Commission. 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.
CONTACT: Liquidity Services, Inc. (LSI)
Media Contact:
Julie Davis, Corporate Communications Director
202-558-6234
[email protected]
SOURCE: Liquidity Services, Inc. (LSI)
Comments are closed.