RumbleOn and RideNow to Merge
Irving, Texas based RumbleOn, a 100% online ecommerce company that aggregates and distributes pre-owned automotive and powersport vehicles to and from consumers and dealers, is to "combine" its business with Chandler, Arizona based RideNow - the largest powersports retailer group in the United States.
In fact, RumbleOn, a 100% online buy/sell and finance platform, appears to be buying the RideNow chain of brick and mortar powersports retail locations for a combination of cash and shares.
The two businesses have entered into a Definitive Agreement to form a publicly traded powersports dealership platform that is being described as "the first omnichannel customer experience in powersports in North America - delivering an unparalleled solution to powersports enthusiasts."
RumbleOn (NASDAQ: RMBL) says it sold more than 63,000 vehicles in 2020, generating revenue of approximately $1.3bn net income and that the combination with RideOn will "propel revenue growth and drive meaningful cost synergies" in a deal that values RideNow at $575.4m - $400.4m of which will be paid in cash, with $175m paid in RumbleOn Class B common stock. Up to $280.0m of the cash consideration is to be funded by new debt financing.
"The integration of RideNow's extensive footprint and strong retail brand with RumbleOn's technology platform will transform the nation's largest powersports dealer into the first, and only, omnichannel powersports platform in North America.
"Together, the combined company will have a dominant position in a $100+ billion market. The end-to-end platform will enable the combined company to reach more consumers in a secularly growing, but still highly fragmented market that is benefitting from changing consumer behavior."
Founded in 1983, RideNow has more than 40 full-service retail locations in 11 states. In 2020, RideNow sold 45,527 powersport units, including ATVs, UTVs, motorcycles, snowmobiles and personal watercraft, generating approximately $899.4m in total revenue.
RumbleOn's ecommerce platform is described as providing an "efficient, timely and transparent transaction experience, without leaving home. Whether buying, selling, trading or financing a vehicle, RumbleOn offers dealers and consumers a friction-free experience - without geographic boundaries."