ARI to Acquire the Retail Division Assets of 50 Below
ARI Network Services, a provider in creating, marketing, and supporting SaaS and DaaS solutions, announced that the U.S. Bankruptcy Court, District of MN, approved the sale of the retail division assets of 50 Below Sales & Marketing to ARI’s wholly owned subsidiary. The retail division of 50 Below is a provides e-commerce websites in the powersports, automotive tire & wheel aftermarket, medical equipment and pool and spa industries.
“This acquisition is consistent with our strategy to grow the business organically and through strategic acquisitions,” said Roy W. Olivier, CEO and President of ARI. “The addition of 50 Below’s retail services employees and customers will help to accelerate our entry into new, high-growth markets, including the automotive aftermarket, specifically automotive tire & wheel dealers.”
ARI supports the powersports industry and provides dealers, distributors and manufacturers with innovative solutions that help drive service and sales.
“This acquisition not only positions ARI as the premier provider of dealer websites in the powersports industry but also establishes ARI as one of the largest providers of equipment dealer websites more broadly,” added Olivier. “In addition, it provides ARI with more than 2,000 dealer websites in the automotive tire and wheel industry and two new potential growth opportunities in the medical equipment and pool and spa markets to explore.”
Darin Janeck, CFO, said, “50 Below’s retail division powers more than 3,500 dealer websites. The division reported $10 million in revenue during the first nine months of 2012 and we expect the acquisition should have a significant positive impact on our top line. These additional revenues will allow us to further leverage our fixed cost structure and significantly enhance EBITDA and earnings per share.”
ARI plans on making the Duluth office the center of its automotive and powersports operations.
“It is our intention to invest in the Duluth operations, leveraging the experience of 50 Below’s talented team who are ready to hit the ground running with the support of a profitable and growing business behind them,” Janeck said.
ARI Network Services creates, markets, and supports software as a service (SaaS) and data as a service (DaaS) solutions that enhance revenue and reduce costs for our customers.