RumbleOn, an e-commerce platform where motorcycles are bought, sold, and traded, has acquired RideNow Powersports, the nation’s largest powersports retailer, per Bloomberg.
RumbleOn agreed to a purchase price of $400.5 million in cash and $175 million in Class B common stock. The deal will form powersports’ first omni-channel customer experience in North America. Revenue for the two entities is expected to reach a combined $1.5 billion in 2021.
“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,” said RumbleOn CEO Marshall Chesrown.
As a result of the acquisition, Oaktree Capital, an investment management firm, will provide RumbleOn with $250 million, with the opportunity for that number to increase to $280 million.
The move comes as RumbleOn works to recover significant losses due to the pandemic. Total revenue for e-commerce platform reached $416.4 million in 2020, a steep drop from $840.6 million in 2019.
On Monday, RumbleOn’s market cap reached $128 million, as shares jumped from $48.87 at market open to $57.50. The acquisition is set to bring the enterprise value of RumbleOn to around $850 million.
