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Business Combinations (Tables)
 12 Months Ended
Dec. 31, 2017
Iron Planet Holdings Inc. [Member]  
Schedule of Net Cash Flows and Purchase Price



 

 

 

 

 

 



 

 

 

 

 

 



 

 

 

 

 

May 31, 2017

Cash consideration paid to former equity holders

 

 

 

 

$

 723,810 

Settlement of IronPlanet's debt

 

 

 

 

 

 36,313 

Settlement of IronPlanet's transaction costs

 

 

 

 

 

 12,583 

Cash consideration paid on closing

 

 

 

 

 

 772,706 

Cash consideration paid related to closing adjustments

 

 

 

 

 

 1,771 

Less: cash and cash equivalents acquired

 

 

 

 

 

 (95,626)

Less: restricted cash acquired

 

 

 

 

 

 (3,000)

Acquisition of IronPlanet, net of cash acquired

 

 

 

 

$

 675,851 



 

 

 

 

 

 

Cash consideration paid on closing

 

 

 

 

$

 772,706 

Replacement stock option awards attributable to pre-

 

 

 

 

 

 

combination services

 

 

 

 

 

 4,926 

Stock option compensation expense from accelerated vesting

 

 

 

 

 

 

of awards attributable to post-combination services

 

 

 

 

 

 (2,596)

Cash consideration paid relating  to closing adjustments

 

 

 

 

 

 1,771 

Settlement of pre-existing intercompany balances

 

 

 

 

 

 (333)

Purchase price

 

 

 

 

$

 776,474 



Schedule of Assets Acquired and Liabilities Assumed



 

 

 



 

 

 



 

 

May 31, 2017

Purchase price

 

$

 776,474 



 

 

 

Assets acquired:

 

 

 

Cash and cash equivalents

 

$

 95,626 

Restricted cash

 

 

 3,000 

Trade and other receivables

 

 

 13,021 

Inventory

 

 

 600 

Advances against auction contracts

 

 

 4,623 

Prepaid expenses and deposits

 

 

 1,645 

Income taxes receivable

 

 

 55 

Property, plant and equipment

 

 

 2,381 

Other non-current assets

 

 

 2,551 

Deferred tax assets

 

 

 1,497 

Intangible assets ~

 

 

 188,000 



 

 

 

Liabilities assumed:

 

 

 

Auction proceeds payable

 

 

 63,616 

Trade and other payables

 

 

 14,511 

Deferred tax liabilities

 

 

 26,959 

Fair value of identifiable net assets acquired

 

 

 207,913 

Goodwill acquired on acquisition

 

$

 568,561 



~Intangible assets consist of indefinite-lived trade names and trademarks, customer relationships with estimated useful lives of ranging from six to 13 years, and a technology platform with an estimated useful life of 7 years.

Pro Forma Financial Information



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31,

 

 

 

 

 

 

 

 

 2017 

 

 

 2016 

Revenue

 

 

 

 

 

 

 

$

 659,861 

 

$

 676,234 

Net income

 

 

 

 

 

 

 

 

 94,244 

 

 

 24,179 

Basic earnings per share

 

 

 

 

 

 

 

 

 0.88 

 

 

 0.21 

Diluted earnings per share

 

 

 

 

 

 

 

 

 0.87 

 

 

 0.21 



Mascus International Holdings BV [Member]  
Schedule of Assets Acquired and Liabilities Assumed





 

 



 

 

February 19, 2016

Purchase price

$

 29,580 

Fair value of contingent consideration

 

 3,431 

Non-controlling interests (1)

 

 596 

Total fair value at Mascus Acquisition Date

 

 33,607 



 

 

Fair value of assets acquired:

 

 

Cash and cash equivalents

$

 1,457 

Trade and other receivables

 

 1,290 

Prepaid expenses

 

 528 

Property, plant and equipment

 

 104 

Intangible assets (2)

 

 14,817 



 

 

Fair value of liabilities assumed:

 

 

Trade and other payables

 

 1,533 

Other non-current liabilities

 

 37 

Deferred tax liabilities

 

 2,683 

Fair value of identifiable net assets acquired

 

 13,943 

Goodwill acquired on acquisition

$

 19,664 

(1)

The Company acquired 100% of Mascus and within the Mascus group of entities there were two subsidiaries that were not wholly-owned, one domiciled in the United States and one domiciled in Denmark. As such, the Company acquired non-controlling interests.  The fair value of each non-controlling interest was determined using an income approach based on cash flows of the respective entities that were attributable to the non-controlling interest. On May 27, 2016, Ritchie Bros. Holdings (America) Inc. acquired the remaining issued and outstanding shares of the Mascus subsidiary domiciled in the United States for cash consideration of $226,000.

(2)

Intangible assets consist of customer relationships with estimated useful lives of 17 years, indefinite-lived trade names, and software assets with estimated useful lives of five years.
Petrowsky Auctioneers Inc. [Member]  
Schedule of Assets Acquired and Liabilities Assumed



 

 



 

 



 

August 1, 2016

Purchase price

$

 6,250 

Fair value of contingent consideration

 

 1,433 

Total fair value at Petrowsky Acquisition Date

 

 7,683 



 

 

Assets acquired:

 

 

Property, plant and equipment

$

 441 

Intangible assets ~

 

 2,934 

Fair value of identifiable net assets acquired

 

 3,375 

Goodwill acquired on acquisition

$

 4,308 

~Consists of customer relationships with estimated useful lives of 10 years.

Kramer Auctions Ltd. [Member]  
Schedule of Assets Acquired and Liabilities Assumed



 

 



 

November 15, 2016

Purchase price

$

 11,138 

Deferred purchase note consideration

 

 223 

Fair value of contingent consideration

 

 538 

Total fair value at Kramer Acquisition Date

 

 11,899 



 

 

Assets acquired:

 

 

Property, plant and equipment

$

 399 

Intangible assets ~

 

 4,678 

Fair value of identifiable net assets acquired

 

 5,077 

Goodwill acquired on acquisition

$

 6,822 



~Consists of customer relationships and trade names with estimated useful lives of 10 and three years, respectively.