RumbleOn closes on business combination with RideNow

Last week, RumbleOn — one of the nation's largest retailer of powersports vehicles — announced the closing of its business combination with RideNow.

This means RumbleOn, which offers an onminchannel buying experience for powersports customers, has acquired 100% of the RideNow dealership portfolio.

"We are very excited to announce that we closed our business combination with RideNow, becoming the first omnichannel customer experience in powersports," said RumbleOn chief executive officer Marshall Chesrown said in a news release. 

"Consumers are seeking new and exciting experiences and there is no better place than powersports. Powersports are wants, not needs, and it’s that lifestyle, that passion for the sport that creates the opportunity for an Omnichannel solution. We are confident that the integration of RideNow's extensive geographic footprint, strong retail brand combined with RumbleOn's technology platform, and access to pre-owned inventory will make powersport vehicles more accessible to the enthusiast and the first time buyers, nationwide," he said.

Mark Tkach, co-principal owner and co-founder of RideNow, said: "Today marks a significant evolution in the powersports industry. Combining with RumbleOn enables us to offer an unparalleled customer experience for outdoor enthusiasts across the country. We look forward to the opportunity to work alongside Marshall and the entire RumbleOn team to revolutionize the $100+ billion market. We are entering the next phase of growth and are ready to hit the ground running."

In additional news from the company, prior to closing the RideNow deal, RumbleOn closed its upsized public offering of approximately 5.1 million shares of Class B Common Stock at a price to the public of $33.00 per share. This includes the full exercise of the underwriters’ option to purchase an additional 659,090 shares from RumbleOn, it reported.

RumbleOn raised approximately $167 million in gross proceeds for the business combination and working capital.

The business combination is also being funded through a $280.0 million term loan from funds managed by Oaktree Capital Management (and certain other lenders) and the issuance to RideNow equity holders of approximately 5.8 million RumbleOn Class B shares.

In addition, the lenders have committed to a $120.0 million delayed draw term loan facility which the company may use in the future to fund acquisitions, subject to certain conditions.