RumbleOn Inc., an ecommerce company using technology to aggregate and distribute pre-owned vehicles to and from consumers and dealers, has entered into a definitive merger/equity purchase agreement with powersports dealer, RideNow.

The agreement creates what the companies describe as the only omnichannel customer experience in powersports and the largest publicly traded powersports dealership platform.

The companies say the integration of RideNow’s footprint and retail brand with RumbleOn’s technology platform will transform the what they say is the nation’s largest powersports dealer into the first and only omnichannel powersports platform in North America.

The companies say their combined company will have a dominant position in a $100-plus billion market.

With the end-to-end platform, the combined company will be able to reach more consumers in what they describe as a secularly growing, yet still highly fragmented, market. That market is benefitting from changing consumer behavior, they say.

Providing a “strategic rationale,” the companies said powersport vehicle demand continues experiencing strong growth.

That is accelerated by consumer lifestyle changes and advanced vehicle innovation. Access to affordable pre-owned vehicles attracts new riders, according to the companies.

The proposed transaction combines a technology leader in online acquisition and distribution of powersports vehicles with what they describe as the largest traditional brick and mortar retailer in powersports.

RideNow operates more than 40 full-service retail locations in 11 states. RideNow sold 45,527 powersport units last year. That included ATVs, UTVs, motorcycles, snowmobiles, and personal watercraft. It generated approximately $899.4 million in total revenue, $90.3 million in net income and approximately $96.6 million in adjusted EBITDA.

RumbleOn’s said its ecommerce platform provides an efficient, timely and transparent transaction experience, without leaving home. RumbleOn said it offers dealers and consumers a friction-free experience without geographic boundaries.

The companies say the combined company will offer the fastest, easiest and most transparent transaction process available to consumers nationwide. That, combined with proprietary pre-owned sourcing, disrupts the customer search and purchase experience for powersports enthusiasts, the companies say, and that is the case online and in-store.

The combined company will drive organic growth by combining and scaling the legacy RumbleOn and RideNow models. It will also be positioned to further consolidate what the companies say is a highly fragmented powersports industry.

Bringing more than 70 additional years of combined experience in the vehicle retail industry, RideNow’s co-principal owners and co-founders Mark Tkach and William Coulter join RumbleOn’s executive team, Marshall Chesrown, Steve Berrard, and Peter Levy, who have a combined 80-plus years of experience. Tkach and Coulter will also join the RumbleOn board of directors at closing.

“We are creating the only omnichannel solution in the powersports industry – offering an unparalleled customer experience for outdoor enthusiasts across the country,” Chesrown, who is the RumbleOn chief executive officer, said in a news release.

Chesrown also said, “RideNow’s significant physical retail platform provides the missing piece of a ‘bricks and clicks’ strategy for RumbleOn, enabling us to reach consumers wherever they want to shop, whether online, offline, or both. For us, this transaction is about unlocking incremental sales, capturing additional monetization opportunities such as parts and services, and consolidating a fragmented industry to drive efficiency and improve the customer experience.”

Chesrown went on to say, “For our customers, this is about offering the most robust selection of inventory through a simple, safe, hassle-free and flexible experience nationwide.”

“We are thrilled to be joining Marshall and the rest of the RumbleOn team as we gear up to enable more consumers to shop with us through the first omnichannel customer experience,” Tkach of RideNow.

Tkach also said, “We are excited to begin leveraging both companies’ capabilities to expand our combined offering. From adding financing options with RumbleOn Finance to exploring the opportunity to open pre-owned retail stores, RumbleOn’s technology and ecommerce presence will provide us access to a nationwide audience and high demand pre-owned inventory. Combining the proprietary technology platform, online aggregation and distribution, nationwide logistics network and the scale and physical footprint of these two companies will give more powersport enthusiasts across the country access to our robust inventory.”

The business combination is expected to close in the second or third quarter.