A B2B marketplace constructs a global strategy

A primetime operator of a public B2B marketplace and an auctioneer of used construction equipment ended 2022 as banner year – and made an acquisition to transform its business.

In addition to record gross transaction volume on their online B2B marketplace, Richie Bros Auctioneer also made a key acquisition. For the year ended Dec. 31, gross transaction value (GTV) for its online auction and “buy-now” marketplace sites in 2022 grew year over year by 9% to $6.025 billion from $5.533 billion in 2021. In comparison, total revenue, which includes inventory sales and services, increased 22% year-over-year to $1.7 billion. Net income for the year increased 110% year-over-year to $319.8 million.

“We delivered record financial results and made significant progress in continuing to build our marketplace technology and advancing our growth initiative, despite operating in a challenging environment of continued tight supply, inflationary headwinds, aggressive competition, and foreign exchange volatility,” says CEO Ann Fandozzi.

Ritchie is also rethinking how it will expand it its B2B marketplace and digital footprint, Fandozzi says. “We are transforming Ritchie Brothers from a traditional auction business to a trusted global marketplace for insight services and transaction solutions, and we continued our journey by taking several important steps in 2022,” she says. “Ritchie Brothers 2.0, our marketplace technology platform, is in the process of piloting an all new digital check-out experience with self-serve invoices and settlements.”

Vancouver, Canada-based Ritchie Bros. said in November that it would acquire Westchester, Illinois-based IAA, which facilitates the marketing and sale of total-loss, damaged and low-value vehicles, in a $7.3 billion cash-and-stock deal.

“We identified IAA as a potential combination for Ritchie Brothers back in 2020, and together with our board of directors have evaluated a possible acquisition of IAA for more than a year,” Fandozzi  says. “The strategic logic of this combination is clear. With IAA, we believe we can accelerate growth for Ritchie Brothers, drive margin expansion and expand our reach into an attractive adjacent vertical.”