Burnaby, British Columbia — Ritchie Bros. Auctioneers, a Canadian equipment marketplace based in Burnaby, B.C., said Monday that it would purchase U.S.-based IAA Inc. in a US$7.3 billion deal.
The company said the deal aligns with Ritchie Bros.’ goal of diversifying into the salvage vehicle market.
Ritchie Bros. touted a market cap of approximately US$6.9 billion last Friday, said Reuters, citing Refinitiv data, while IAA’s market value was reported at US$5.3 million.
Shares of IAA Inc. jumped 3.85 percent in early-hours trading but dipped nearly eight percent between 9:30 a.m. and 11:30 a.m. Monday.
As of Monday’s close, shares of IAA Inc. were trading at $38.42; down one percent from Friday’s close. As of Wednesday afternoon, IAA’s stock prices stood at $38.40 per share.
Shares of Ritchie Bros dropped as much as 18 percent following Monday’s news. As of Thursday at 1 p.m. ET, shares were trading at $70.24.