RumbleOn Enters into Definitive Agreement to Acquire Wholesale

RumbleOn (NASDAQ:RMBL) announced that it has entered into definitive agreements to acquire Wholesale Inc and Wholesale Express for total consideration of approximately US$23 million.

The company that is operating a e-commerce platform facilitating the ability of consumers and dealers to buy, sell and trade pre-owned cars said that transaction consist of US$16 million in cash and remaining in Class B shares of RumbleOn.

As quoted in the press release:

“Our plan has always been to expand into adjacent markets and the acquisition of Wholesale provides rapid and profitable entrance into the 44 million annual sales automobile market. We will enter this new market with meaningful size and scale, and without the significant start-up costs typically associated with new market entries,” said Marshall Chesrown, Founder, Chairman and CEO of RumbleOn.

Under the terms of the agreement, which have been unanimously approved by each company, RumbleOn will purchase Wholesale for $23.0 million, consisting of $16.0 million of cash and the remaining balance in RumbleOn Class B shares, with the aggregate consideration and number of shares issued subject to adjustment based on the stock price of the RumbleOn Class B Common Stock at closing. The acquisitions of the Wholesale entities are subject to customary closing conditions including the completion of the private placement described further below, and are expected to close on Monday, October 29, 2018.

Wholesale’s management team and full staff will join RumbleOn and continue operations under the Wholesale brand, which will be co-branded with RumbleOn. RumbleOn intends to begin integrating the companies immediately after the closing and will roll out processes and integrations over the next several quarters.

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