EBlock sells 2 US physical auctions to America’s Group
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EBlock is selling its New Orleans and Houston physical auctions to America’s Group, EBlock parent company E Automotive Inc. announced in a news release Monday.
America’s Group will acquire the auctions for roughly $11 million in cash, subject to customary purchase price adjustments. The deal is expected to close Thursday, subject to customary terms and conditions.
E Automotive Inc., which is based in Canada, said the divestment of these U.S. assets enables it to “focus and expand its strong market position within the Canadian automotive industry and capitalize on opportunities presented by the evolving wholesale market due to industry consolidation.”
However, EBlock is not fully withdrawing from the U.S. The company still includes EBlock Flint in Michigan, which “will continue to operate as a strategic import/export market, broadening inventory for both U.S. and Canadian customers.”
EBlock said it will continue investing in licensing and partnerships in both the U.S. and Canada. MAG Now, which is Pacific Northwest-based McConkey Auction Group’s digital auction platform, runs on the EBlock platform. MAG is also utilizing EBlock’s LiveAuctioneer and LiveLanes technology platforms.
As for the sale of its New Orleans and Houston locations, EBlock president Lisa Scott said in a news release, “This divestment marks a pivotal moment for our U.S. teams and auctions, ensuring their future growth and enabling them to thrive. It allows us to intensely focus on licensing and innovation.
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“We are confident that by concentrating our resources, we can further strengthen our leadership in Canada and provide additional solutions and value to dealer and commercial partners through our integrated Land-Meets-Tech and Retail-Meets-Wholesale strategies, which include the ongoing expansion of EDealer and Cars.ca,” Scott said.
CEO Jason McClenahan added: “We believe our technology is at the forefront of the industry, and we see significant potential for collaboration and licensing our technology across North America in the future. We are excited about the future as we continue to innovate and deliver cutting-edge solutions to the automotive industry.”
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