Liquidity Services Acquires National Electronics Service Association (NESA)
Liquidity Services (NASDAQ: LQDT), today announced it has acquired National Electronics Service Association (NESA) in an all-cash transaction. A Canadian provider of returns management, refurbishment and reverse logistics services for high-value consumer products, NESA provides expertise and focused services to Fortune 1000 companies in the management of Consumer Electronics, Telecommunications and Information Technology products.
The acquisition of NESA enhances Liquidity Services' ability to deliver large retailers and OEMs across Canada and the U.S. a full-service, reverse logistics solution for consumer electronics and technology products, including returns management, repair services and multi-channel inventory disposition.
Headquartered in Toronto, Ontario, NESA establishes Liquidity Services' first client service and distribution center in Canada and enables the company to cross-sell services with existing and prospective clients in both the U.S. and Canada. NESA's current service offering is supported by NESALive, a cloud based application that supports returns management, repair and refurbishment services in hundreds of product categories, including satellite TV boxes, laptops, game consoles, tablets, and e-books.
"With the proliferation of technology causing complexity and shorter life cycles across thousands of products, our comprehensive reverse logistics solution, encompassing returns management, refurbishment and multi-channel disposition and re-sale services, enables us to reduce costs and increase recovery value for retailers and OEMs,” said Bill Angrick, Chairman and CEO of Liquidity Services. “We are delighted to add NESA's experienced team and capabilities to our business and look forward to providing NESA's client base the opportunity to utilize our existing multi-channel asset recovery services for surplus and refurbished consumer electronics and technology products. The Liquidity Services' solution leverages over 2.2 million global buyers as well as our experience completing the sale of over $3.0 billion in Gross Merchandise Volume.”
"We are excited to join Liquidity Services and combine our respective services to create a comprehensive reverse logistics solution for electronic and technology products,” said Dominic Renda, President and Founder of NESA. “Liquidity Services brings us a leading market position, expertise and resources to help NESA reach the next level, representing an even brighter future for our growth, innovation and value for our clients and employees.”
Liquidity Services expects the deal to add approximately US$20 to US$25 million of annual Revenue and, excluding one-time deal expenses, to be $0.02 to $0.03 cents accretive to its fiscal year 2013 earnings results.
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