Liquidity Services, Inc. (NASDAQ: LQTD) has announced its plans to purchase Network International for $15 million. Liquidity Services will pay $7.5 million up front and will pay up to $7.5 million after 18 months following an evaluation of performance.
“We believe that the acquisition of Network is an exciting vertical expansion of our marketplace and a winning proposition for LSI’s and Network’s established base of clients and buyers,” said Bill Angrick, Chairman and CEO of LSI. “The sale of capital assets comprises approximately one-third of our business today and clients with idle and used capital equipment within the energy sector will benefit from the opportunity to leverage LSI’s technology, innovative value-added services and existing global buyer base.”
Liquidity Services expects the acquisition to add approximately $45 million of annual Gross Merchandise Volume and 2 cents per share for 2011.
The acquisition is in keeping with Angrick’s predictions last year when he spoke with ExecutiveBiz. At the time, Angrick’s said the company will likely see its civilian market expand. Network International runs online auctions for surplus gas and oil equipment.