RumbleOn (NASDAQ: RMBL) is continuing its expansion push acquisitions.
Marking its third deal this year, the Irving-based publicly traded online vehicle marketplace has entered into a definitive agreement to acquire Fort Worth powersport vehicle dealer Freedom Powersports.
Financial terms of the deal, which is expected to close later this year or early next year, were not disclosed.
“We expect Freedom to be accretive to our performance on day one without raising equity capital to fund cash consideration,” said RumbleOn CEO Marshall Chesrown in a statement.
Since launching in 2017, RumbleOn has grown its omnichannel platform through acquisition deals, making at least one move each year.
The largest deal the company has made was valued at more than $575 million and came earlier this year when it acquired Arizona retailer RideNow Powersports. It followed that with an acquisition of an unnamed powersports dealer in Florida, where RumbleOn recently opened a 60,000 square-foot fulfillment center.
With the Freedom Powersport deal, RumbleOn has more than 55 locations across the country and 500 dealers using its technology.
While RumbleOn’s shares closed at $43.59 per share on Tuesday, .25% lower than the previous day’s close, the company has seen recent financial growth. In Q2, it reported a total revenue of $168.3 million, a 61% increase from the previous quarter’s numbers. It also said that had the deal with RideNow taken place on Jan. 1, it would expect a 2021 revenue of between $1.45 billion and $1.55 billion, with an adjusted EBITDA in the range of $110 million and $115 million.
This year, RumbleOn has made a number of leadership moves. In June, it brought on Michael Francis as its general counsel, the same month that Co-founder, CFO and Board Member Steven Berrard passed away. A couple months later, it named Matthew McCartin as its chief marketing officer.
Freedom Powersports was created in 2012 when President and CEO Kevin Lackey purchased Family Powersports Weatherford and Family Powersports Hurst Discount Outlet, where he had served as general manager. It has since grown its presence to 13 locations in Texas, Georgia and Alabama. According to LinkedIn, the company has nearly 130 employees.
“We remain confident in our ability to transform the highly fragmented powersports industry to drive efficiencies in the marketplace and to improve the customer experience,” Chesrown said.
