– Acquisition Adds 1,400 Municipal and State Agency Sellers and
Thousands of Professional Buyers of Surplus Assets to LSI’s Online
Marketplace Business –
WASHINGTON–(BUSINESS WIRE)–Dec. 26, 2007–Liquidity Services,
Inc. (LSI), a leading online auction marketplace for wholesale,
surplus and salvage assets, today announced it has agreed to acquire
Information Management Specialists, Inc. and its GovDeals, Inc.
subsidiary for approximately $10 million in cash. GovDeals is an
online auction marketplace for the sale of surplus and confiscated
items for local and state government entities including city, county
and state agencies as well as school boards and public utilities.
The acquisition strengthens LSI’s business by adding 1,400 new
government agency clients, approximately 80,000 registered buyers and
a critical mass of relationships to support new public sector business
initiatives. In addition to a specialized sales force focused on
building long term relationships with state and local agencies,
GovDeals’ business model allows sellers to list their own goods for
sale on a consignment fee basis. The acquisition will also allow
GovDeals’ sellers to utilize LSI’s menu of optional value added
services to save costs, improve cycle times and increase revenues.
“We believe that the acquisition of GovDeals is a natural
complement to our organization and a winning proposition for LSI’s and
GovDeals’ established network of sellers and buyers,” said Bill
Angrick, Chairman and CEO of LSI. “These sellers will benefit from the
opportunity to leverage LSI’s technology, innovative value-added
services and existing buyer base for government surplus assets. The
demonstrated expertise of GovDeals in understanding and meeting the
needs of its customers will help further establish LSI as the leading
marketplace for the sale of surplus and salvage assets to a growing
base of professional buyers and government agency sellers.” LSI will
retain the current GovDeals management team and employees post
LSI expects the deal to add approximately $30 to $35 million of
Gross Merchandise Volume (GMV) and to be neutral to net income for its
fiscal year 2008 results.
The acquisition is expected to close in January 2008 and is
subject to customary closing conditions and post-closing price
adjustments related to working capital items.
About Liquidity Services, Inc. (LQDT)
Liquidity Services, Inc. (NASDAQ:LQDT) and its subsidiaries enable
corporations and government agencies to market and sell surplus assets
and wholesale goods quickly and conveniently using online auction
marketplaces and value-added services. The company is based in
Washington, D.C. and has 585 employees. Additional information can be
found at: www.liquidityservicesinc.com.
This document contains forward-looking statements made pursuant to
the Private Securities Litigation Reform Act of 1995, including,
without limitation, statements regarding the potential benefits,
impact on fiscal 2008 operating results and expected closing date, of
the acquisition of the Informs/GovDeals business by LSI. The outcome
of the events described in these forward-looking statements is subject
to known and unknown risks, uncertainties and other factors that may
cause our actual results to differ materially from any future results
expressed or implied by these forward-looking statements. You can
identify forward-looking statements by terminology such as “expects,”
or the negative of these terms or other comparable terminology. We
cannot guarantee future results, levels of activity, performance or
achievements. There are a number of risks and uncertainties that could
cause our actual results to differ materially from the forward-looking
statements contained in this document. Important factors that could
cause our actual results to differ materially from those expressed as
forward-looking statements are set forth in the Company’s Annual
Report on Form 10-K for the fiscal year ended September 30, 2007,
including, but not limited to, those set forth in Part I, Item IA
(Risk Factors). There may be other factors of which we are currently
unaware that may cause our actual results to differ materially from
the forward-looking statements. All forward-looking statements apply
only as of the date of this document and are expressly qualified in
their entirety by the cautionary statements included in this document.
Except as may be required by law, we undertake no obligation to
publicly update or revise any forward-looking statement occurring
after the date of this document.
CONTACT: Liquidity Services, Inc.
Julie Davis, 202-558-6234
Corporate Communications Director
SOURCE: Liquidity Services, Inc.