NEW YORK – Vaquero Capital received two major deal awards at the USA M&A Atlas Awards, held last week in a virtual ceremony. Vaquero was recognized with the award for Tech Deal of the Year in advising Top of Mind Networks on its sale to Black Knight. The firm was also awarded Growth Investment Deal … Continued
BOSTON & LONDON — TA Associates, a leading global growth private equity firm, today announced the acquisitions of Auction Technology Group (“ATG”), a leading online platform for auctions across Europe and the United States, from ECI Partners (“ECI”), and Proxibid, an online marketplace for connecting buyers and sellers across North America, from Primus Capital (“Primus”).
Both ATG and Proxibid transactions closed on the 13th of February 2020. The companies will be brought under the ATG umbrella with headquarters in London, but will retain substantial operations in Omaha, Nebraska, where Proxibid is headquartered. Both management teams are excited about the combination and believe that their collective resources will benefit auctioneers and bidders through increased technology investment and better auction results. As part of the transaction, ECI reinvested in the combined entity and now holds a minority stake. Financial terms of the transaction were not disclosed.
“The auction market is at a unique point in its evolution, benefiting on one hand from transformations in online selling technology and on the other from the growing trend for buyers to seek unique and second use items,” said John-Paul Savant, CEO of Auction Technology Group. “Combining ATG and Proxibid will give us the resources to invest in better tools for auctioneers and accelerate investment in marketing, which we believe will bring a steady stream of new online bidders. The companies are a natural cultural fit, both valuing the provision of a professional experience for our auctioneer and bidder clients.”
The combined resources of ATG and Proxibid will give us greater scale to compete against competitors such as Ritchie Brothers,” said Ryan Downs, CEO of Proxibid. “We will accelerate investment in the online tools that make auctioneers a preferred route for the disposal of many industrial assets. The combination also allows us to address a larger auctioneer base with our tools such as Wavebid, our auction management solution.”
“TA Associates is excited to bring together these two profitable and growing online businesses,” said Morgan Seigler, a Managing Director at TA Associates. “With their similar business models, technology and culture, as well as complementary geography and sector focus, we believe that Proxibid and ATG are an excellent match. In collaboration with ECI, we will aim to expand the businesses through both organic and acquisitive growth, and accelerated international expansion.” As part of this transaction, Mr. Seigler and Mr. Stefan Dandl, a Senior Vice President at TA Associates, will join the ATG Board of Directors.
“We are thrilled to have been a partner with ATG through its growth over the past five years, and are excited to welcome TA Associates as an investor in the company,” said Tom Wrenn, a Partner at ECI Partners. “Market dynamics and the expected increases in online auction penetration will provide a strong backdrop for the continued growth of ATG’s digital marketplaces. In partnership with TA and the ATG management team, we look forward to building on this market opportunity to continue ATG’s impressive growth.”
A 2019 report from Art Basel and UBS found that the online art market reached a new high of $6 billion in 2018, up 11% year-on-year, representing 9% of the value of global sales. A recent survey of mid-tier auction houses also revealed that over 85% of auction houses expect online sales to increase over the next five years. In relation to the industrial equipment segment, a recent market study estimated the global market for used equipment to be sized at over $300 billion.
Squire Patton Boggs provided legal counsel and GCA Altium served as financial adviser to ATG and ECI. Travers Smith LLP provided legal counsel and Alvarez & Marsal served as financial advisor to TA Associates. Wilson Sonsini provided legal counsel and Vaquero Capital served as financial advisor to Proxibid.
About Auction Technology Group (ATG)
ATG is transforming the way billions of pounds, euros and dollars’ worth of secondary goods are bought and sold globally via auction. A global technology company with over 140 employees, and headquarters in London Bridge, ATG was the first to facilitate public auctions online across five digital marketplaces globally (thesaleroom.com, i-bidder.com, BidSpotter.com, BidSpotter.co.uk, and Lot-tissimo.com). ATG’s platform powers live and timed auctions across multiple verticals including Art and Antiques, Classic Cars, Industrial & Commercial, and Consumer Retail Returns. We support more than 1,600 auctioneers in their businesses globally, bringing the online buying community 8.9 million lots each year within a secure, fast and reliable online infrastructure. For more information, please visit www.auctiontechnologygroup.com.
Proxibid is the most trusted platform for connecting buyers and sellers of highly valued items. Since 2001, more than $45 billion in inventory has passed through Proxibid’s platform via live and timed auctions and buy now/make offer transactions. Proxibid’s Marketplace supports 16 categories, including heavy equipment, industrial machinery, real estate, fine art, antiques and collectibles, and more. Proxibid’s PoweredBy solution enables sellers to integrate Proxibid’s marketplace technology into their websites, offering custom development and more to bring ecommerce solutions to companies across the globe. Founded in 2001, Proxibid is headquartered in Omaha, NE. For more information about Proxibid, please visit www.proxibid.com.
About TA Associates
TA Associates is a leading global growth private equity firm. Focused on targeted sectors within five industries – technology, healthcare, financial services, consumer and business services – TA invests in profitable, growing companies with opportunities for sustained growth, and has invested in more than 500 companies around the world. Investing as either a majority or minority investor, TA employs a long-term approach, utilizing its strategic resources to help management teams build lasting value in high quality growth companies. TA has raised $33.5 billion in capital since its founding in 1968 and is committing to new investments at the pace of over $2 billion per year. The firm’s more than 85 investment professionals are based in Boston, Menlo Park, London, Mumbai and Hong Kong. More information about TA Associates can be found at www.ta.com.