RumbleOn Reaches Deal for RideNow Powersports Chain
(Bloomberg) -- RumbleOn Inc., an e-commerce platform for new and used motorcycles, has agreed to acquire motor-sports dealership chain RideNow Powersports, according to people with knowledge of the matter.
The combined entity would have an enterprise value of about $850 million in the transaction, which could be announced as soon as next week, said one of the people, who asked not to be identified because the information was private.
As part of the combination, RumbleOn, advised by B. Riley Financial Inc., has secured a $280 million commitment from Oaktree Capital that could be increased, the person said. The company will use that funding to provide clients with vehicle financing and to make smaller acquisitions, the person said.
Combined, the companies would have had revenue of $1.2 billion in 2020 and $1.5 billion this year, the person said.
Representatives for RumbleOn, Oaktree and B. Riley declined to comment. A spokesperson for RideNow didn’t immediately respond to requests for comment.
RumbleOn, whose competitors include Craigslist, currently has listings for more than 50,000 motorcycles on its website. The site also has listings for recreational vehicles, boats, trailers and snowmobiles.
Based in Irving, Texas, RumbleOn is led by Chief Executive Officer Marshall Chesrown, a former executive at Vroom Inc. and AutoNation Inc. Its chief financial officer, Steven Berrard, co-founded AutoNation.
RumbleOn’s shares jumped 10% to $38.94 Friday, giving the Nasdaq-listed company a market value of $87 million.
Arizona-based RideNow, led by CEO Mark Tkach, has 46 locations, mostly in Sunbelt states from California to Florida, according to its website. Its dealerships sell all-terrain vehicles, motorcycles, boats and snowmobiles.
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