IAA - Why Ritchie Bros. Auctioneers Stock Plunged Today
Shares of Ritchie Bros. Auctioneers (NYSE: RBA) were falling today after the company announced a $7.3 billion acquisition of IAA (NYSE: IAA) , saying it would form a leading global marketplace for heavy equipment and vehicles. Ritchie Bros. also reported third-quarter revenue below analyst estimates.
As of 1:54 p.m. EST, the stock was down 18.2% on the news as the market seemed to dislike the acquisition.
The $7.3 billion enterprise value Ritichie Bros. is paying for IAA is actually higher than Ritchie Bros.' own market cap at $5.5 billion; the $46.88 purchase price represents a 19% premium to where IAA closed on Friday.
For further details see:
Why Ritchie Bros. Auctioneers Stock Plunged Today