Acquisition to broaden and diversify LSI’s marketplace by adding a
European base of commercial buyers and sellers
WASHINGTON–(BUSINESS WIRE)–April 10, 2008–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.
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,
impact on our fiscal 2009 operating results and expected closing date,
of our acquisition of the Geneva Group’s business by LSI. 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 the successful completion of the
Geneva Group acquisition and 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)
Julie Davis
Corporate Communications Director
202-558-6234
[email protected]
SOURCE: Liquidity Services, Inc. (LSI)
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