CHARLOTTE — Charlotte-based RumbleOn Inc. has agreed to acquire Wholesale Express in a $23 million deal, the company announced Friday.
The deal consisted of $16 million in cash and a remaining $7 million in RumbleOn class B shares.
The companies anticipate the acquisition will close by Monday.
RumbleOn operates an online marketplace for users to buy, sell, trade or finance recreation vehicles such as motorcycles, scooters and sports bikes. The acquisition of Wholesale Express, a distributor of pre-owned vehicles, will allow the company to expand into the automobile business, RumbleOn CEO Marshall Chesrown said in the filing.
RumbleOn also announced the sale of an additional $21.5 million worth of Class B stock to certain investors for working capital to finance the acquisition. The company is also expanding its existing credit facility by $5 million.
RumbleOn stock was trading at $6.87 per share on Friday, down 15.8 percent from the day prior.
RumbleOn
The company also announced preliminary third quarter results, stating that revenue was $19.26 million, up 420 percent from this time last year. Net loss for the quarter increased 195 percent, from $2.32 million in 2017 to $6.84 million.
The filing can be found here.
This story is from the North Carolina Business News Wire, a service of the UNC-Chapel Hill School of Media and Journalism
