From the Wires
ARI to Acquire the Retail Division Assets of 50 Below, Inc.
Acquisition strengthens ARI's position; creates opportunities in new high-growth markets
By: PR Newswire
Nov. 13, 2012 10:42 AM
MILWAUKEE, Nov. 13, 2012 /PRNewswire/ -- ARI Network Services, Inc. (OTCBB:ARIS), a leader in creating, marketing, and supporting SaaS and DaaS solutions that connect consumers, dealers, distributors, and manufacturers in selected vertical markets, announced today that the U.S. Bankruptcy Court, District of Minnesota, approved the sale of the retail division assets of Fifty Below Sales & Marketing, Inc. to ARI's wholly-owned subsidiary. The retail division of 50 Below is a leading provider of eCommerce websites in the powersports, automotive tire & wheel aftermarket, medical equipment and pool and spa industries. The transaction is expected to close in the month of November.
"This acquisition is consistent with our strategy to grow the business organically and through strategic acquisitions. 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," said Roy W. Olivier, CEO and President of ARI. "The combination of 50 Below's retail division with ARI's team, unparalleled catalog of enriched manufacturer and aftermarket content, as well as our award-winning products, will be powerful. 50 Below's technology and focus strengthens ARI's position in these markets and is consistent with our mission to help our customers sell more product."
ARI has nearly a 20-year history of supporting the powersports industry and providing 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 & wheel industry and two new potential growth opportunities in the medical equipment and pool and spa markets to explore."
"50 Below's retail division powers more than 3,500 dealer websites," said Darin Janecek, Chief Financial Officer at ARI. "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."
According to Janecek, 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."
For more information on ARI, please visit www.arinet.com
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SOURCE ARI Network Services, Inc.
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