RumbleOn growth strategy and AutoSport-USA online market place
RumbleOn announced that it has acquired independent pre-owned vehicle distributor AutoSport-USA and announced that AutoSport’s President Scott Bennie has joined the RumbleOn management team.
The acquisition is a continuation of RumbleOn’s unified growth strategy to acquire and redistribute pre-owned vehicle inventory to consumers and dealers through its online marketplace. AutoSport provides immediate access to new inventory, enhances access to the Florida market, and further expands RumbleOn’s team of industry experts.
Brings new talent
RumbleOn entered the automobile market through its acquisitions of Wholesale Inc. and the acquisition of AutoSport is a continuation of its expansion plans in the automobile market. The company believes that RumbleOn’s technology – combined with AutoSport’s established market presence and profitability – will drive margin expansion and growth through inventory acquired directly from consumers and retail sales.
The total consideration is comprised of
(i) approximately $0.7 million in cash,
(ii) an aggregate of approximately $2.1 million in convertible promissory notes,
(iii) contingent earn-out shares of RumbleOn’s Class B Common Stock valuing up to approximately $0.8 million if Autosport achieves certain performance thresholds.
Marshall Chesrown, Founder, Chairman and CEO of RumbleOn stated, “We are committed to growing our business while maintaining the core competencies of RumbleOn – efficient vehicle acquisition and completely agnostic distribution. Both Steve and I have known Scott Bennie for a long time and greatly respect his deep understanding and previous success in the sector. RumbleOn and AutoSport have strong synergies across our business models and solutions and we believe this acquisition scales our business by unlocking new inventory distribution relationships and improving our penetration of the Florida market. We will integrate RumbleOn’s technology across AutoSport’s operations, allowing us to acquire a wider range of inventory through our cash offer tool and redistribute that inventory to consumers and dealers through our 100% online platform. We are executing on our plan to penetrate the automobile market and believe the AutoSport acquisition demonstrates our confidence in our growth strategy and commitment to delivering shareholder value. We look forward to providing more detail and updates on our progress on our quarterly earnings call.”