VANCOUVER — Ritchie Bros. Auctioneers Inc. says it has signed a deal to acquire U.S. company IAA Inc. in a transaction valued at about US$7.3 billion including the assumption of US$1.0 billion of net debt.
Under the terms of the agreement, IAA shareholders will receive US$10 in cash and 0.5804 of a Ritchie Bros. common share for each share of IAA they own.
The purchase price, valued at US$46.88 per share, represents a premium of about 19 per cent to IAA’s closing share price on Friday.
IAA auctions vehicles on a digital platform.
The company has nearly 4,500 employees and more than 210 facilities in the U.S., Canada and the United Kingdom.
The deal is expected to close in the first half of next year, subject to approval by the shareholders of both companies as well as regulatory approvals and other customary closing conditions.
Companies in this story: (TSX:RBA)
The Canadian Press
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