November 17, 2022 | Technology | North America | Ended
Canada’s Ritchie Bros. Auctioneers (“Ritchie”) has agreed to buy US-based damaged vehicle marketplace provider IAA in a stock and cash transaction that values the company at $7.3bn, or $46.88 per share, based on Ritchie’s undisturbed 10-day VWAP. Under the deal terms, $10 in cash plus 0.5804 RBA shares for each IAA share, Ritchie is offering an 18% one-day premium to IAA’s undisturbed price on 4-Nov-22. Upon closing, IAA shareholders will own 41% of the combined company while Ritchie shareholders will own the remaining 59%. Ritchie plans to fund the deal through a combination of its existing cash and new debt, and it has secured bridge financing commitments for a $750m revolver and a $2.8bn in bridge loan from a consortium of lenders that include Goldman Sachs, Bank of America, and Royal Bank of Canada. Ritchie’s shares are dually listed, and we assume that most funds will use ...
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