Auction Technology Group PLC on Tuesday said it bought Vintage Software LLC, trading as estatesales.net, for $40 million in total.
Auction Technology is a London-based online auction operator.
Shares were up 3.4% at 706.00 pence each, making it the best FTSE-250 performer on Tuesday morning in London.
The company said the acquisition of the US estate sales listing site expands Auction’s ‘immediately addressable market into the growing and fragmented US estate sales market’. The market had an estimated gross merchandise value of $5 million in 2022.
Auction will pay an initial cash payment of $30 million with deferred cash consideration of $10 million payable after twelve months. It said the purchase will be funded from its available cash balance and existing debt facilities.
ESN, based in Jackson, Missouri, attracts over 3 million monthly listing subscribers. It offers a platform to facilitate estate sales across the US.
Chief Executive Officer John-Paul Savant said: ‘As a leading US estate sale listing site, estatesales.net is a natural fit for ATG as we unlock further areas of value within the secondary goods market and facilitate another part of the circular economy.’
In 2022, ESN produced revenue of $8.7 million and an earnings before interest, tax, depreciation and amortisation of $4.7 million.
Auction expects the acquisition to be accretive to its adjusted Ebitda for the current financial year ending on September 30.
For financial 2022, Auction had said in December that it swung to a profit of £9.3 million from a loss of £25.0 million, while revenue surged 71% to £119.8 million from £70.1 million thanks to growth in gross merchandise value and an additional boost from value-add services.
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