Liquidity Services Inc. (LSI) announced it will acquire Information Management Specialists Inc. and its GovDeals Inc. subsidiary for approximately $10 million in cash. LSI said it expects the deal to add approximately $30 to $35 million of Gross Merchandise Volume (GMV) in 2008. LSI operates the Liquidation.com, GovLiquidation.com and LiquiBiz.com auction marketplaces for wholesale, surplus and salvage assets.
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 will add 1,400 new government agency clients, approximately 80,000 registered buyers and relationships to support new public-sector business initiatives. In addition to a specialized sales force focused on building relationships with state and local agencies, GovDeals' business model allows sellers to list their own goods for sale on a consignment fee basis.
LSI will retain the current GovDeals management team and employees post closing. The acquisition is expected to close in January 2008 and is subject to customary closing conditions.
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