FreeMarkets Grabs Dealer, Buyer Network
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FreeMarkets paid $18 million in cash for privately held firms, Surplus Record Inc. and SR Auction Inc.
With the deal, FreeMarkets (FMKT) also gains an online surplus asset trade site for business surplus, new and used industrial equipment and machinery and machine tools. FreeMarkets will also acquire 200,000 dealers and end-users and over 50,000 listings for assets worth more than $750 million.
FreeMarkets is targeting industrial firms, which are increasingly turning to the Internet to sell their surplus equipment and inventory.
The acquisition of Surplus Record and SR Auction follows FreeMarkets' recent purchase of iMark.com, a leading business-to-business online marketplace for asset recovery.
In recent weeks, industry analysts' estimates that the worldwide market for surplus equipment and inventory is worth $300 billion annually have sent heavyweights AOL (AOL) and Yahoo! (YHOO) scrambling to grab pieces of the business-to-business marketplace pie.