RumbleOn Inc., an Irving-based e-commerce platform founded in 2016 to buy, sell, trade, and finance motorcycles, has officially entered into a definitive agreement to acquire the nation’s largest powersports retailer, RideNow.
The deal will result in the combination of the two companies, creating what is said to be “the only omnichannel customer experience in powersports and the largest publicly traded powersports dealership platform.” Now, powersports enthusiasts will be able to receive cash offers, buy, sell, trade, or finance new and used vehicles—without ever having to leave their homes.
With the transaction, which is valued at $575.4 million, RumbleOn’s technology will integrate with RideNow’s extensive footprint and retail brand.
[Image: RumbleOn]
Last year, RideNow sold 45,527 powersport units—ATVs, UTVs, motorcycles, snowmobiles, and personal watercraft—to generate around $899.4 million in total revenue. The company operates more than 40 brick-and-mortar locations in 11 states across the U.S.
But, with RumbleOn, the powersports giant will transform into a first-of-its-kind omnichannel powersport platform.
“From adding financing options with RumbleOn Finance to exploring the opportunity to open pre-owned retail stores, RumbleOn’s technology and e-commerce presence will provide us access to a nationwide audience and high demand pre-owned inventory,” Mark Tkach, RideNow’s co-principal owner and co-founder, said in a statement. “Combining the proprietary technology platform, online aggregation and distribution, nationwide logistics network, and the scale and physical footprint of these two companies will give more powersport enthusiasts across the country access to our robust inventory.”
RumbleOn’s platform offers an easy, quick, transparent way for dealers and consumers to transact without geographic boundaries. The technology aggregates and distributes pre-owned automotive and powersport vehicles to provide virtual inventory and a 24/7 distribution platform.
But the powersports industry is highly fragmented, according to the companies.
Though the market is valued at more than $100 billion, the consumer base is undergoing changing behavior. Demand for powersports has continued to significantly grow, accelerated by lifestyle changes, vehicle innovation, and access to affordable pre-owned vehicles.
The combined company will consolidate the industry to offer a transparent transaction process to consumers nationwide. This completely disrupts the customer “search and purchase” experience for powersports enthusiasts, online and in stores.
RumbleOn and RideNow hope the new e-commerce platform will “propel revenue growth” and “drive meaningful cost synergies” that can improve monetization and margin expansion.
“RideNow’s significant physical retail platform provides the missing piece of a ‘bricks and clicks’ strategy for RumbleOn, enabling us to reach consumers wherever they want to shop, whether online, offline, or both,” RumbleOn CEO Marshall Chesrown said in a statement. “For our customers, this is about offering the most robust selection of inventory through a simple, safe, hassle-free, and flexible experience nationwide.”
RumbleOn and RideNow expect to close the deal during the second or third quarter of 2021. At that time, both executive teams will join their combined vehicle retail experience of more than 150 years.
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