Milwaukee-based ARI Network Services Inc. paid a cool $10.3 million to Florida residents Raymond Basha and Herbert Boardman for its acquisition of Weston, Florida-based Auction123.
ARI completed the acquisition on Nov. 1, but now has filed related documents with the SEC detailing how it will pay for the addition, and who will benefit.
ARI on Nov. 1 increased its term loan amount to $13 million, to be repaid by Nov. 1, 2021. It paid $10.25 million in cash, plus a $250,000 holdback payment, to acquire Auction123. There is also a contingent earn-out purchase price (if any) of $1.5 million maximum to be paid to the former owners, based on the company meeting certain revenue benchmarks.
Auction123 provides software to car dealerships that allows them to automate the online sale of their inventory. The company was founded in 2001 and has about 19 employees, said Bill Nurthen, chief financial officer at ARI. More than 1,200 North American dealerships are using the technology.
Auction123 will retain its location and employees in Florida. It will be known as Auction123, an ARI Network Services company.
ARI provides sales software and marketing tools for dealers, distributors and manufacturers. The company reported a $458,000 profit in its fiscal fourth quarter.
