What's Going On With Commerce Company Liquidity Services Stock Today?

Shares of Liquidity Services, Inc. LQDT, a prominent player in global commerce focused on the circular economy, are trading lower in premarket trading on Monday.

The company announced the acquisition of Auction Software/Simple Auction Site. Terms of the transaction were not disclosed.

Founded by Rajesh Rajaram in 2015, Auction Software has created auction and marketplace platforms for various industries. Simple Auction Site (SAS) focuses on providing auction platforms for sports collectibles and fine wine.

This move establishes a new private-label and Software-as-a-Service (SaaS) division, Liquidity Services Software Solutions, Inc.

The acquisition is said to enhance Liquidity Services’ reach in the fragmented Circular Economy market and strengthen its software development resources, enabling the company to better support businesses of all sizes, from entrepreneurs to large multinational corporations.

Also Read: Walmart Canada To Invest About $3.8 Billion Over Five Years

“This acquisition aligns with our commitment to empower organizations to create value in the Circular Economy marketplace using innovative solutions,” said CEO Bill Angrick.

This acquisition is part of Liquidity Services’ strategy to offer tailored SaaS solutions to a growing client base, including businesses seeking forward, reverse, and hybrid online auctions.

Following the acquisition, Rajesh Rajaram, the founder of Auction Software, along with other key team members, will stay with the company to continue overseeing the development of auction platforms.

The deal is not anticipated to materially affect the overall financial performance of Liquidity Services. The company held $155.5 million in cash and equivalents as of September 30, 2024.

Price Action: LQDT shares are trading lower by 7.10% at $34.65 in premarket at the last check Monday.

Read Next: