IronPlanet, a leading online marketplace for buying and selling used heavy equipment and trucks, said it has signed an agreement with Cat Auction Services,  an alliance of Caterpillar, to merge the two companies.

Once combined, IronPlanet and Cat Auction Services will provide buyers and sellers of used heavy construction equipment a unique auction experience, backed by technology, services and equipment expertise unmatched in the industry, said Gregory J Owens, the  chairman and CEO of IronPlanet, after signing the agreement with William L Hoeft, the chairman of Cat Auction Services.

“I am very excited about the combination of IronPlanet and Cat Auction Services, two trusted partners in helping buyers and sellers with their used heavy equipment acquisition and disposal needs,” stated Owens.

“The power of IronPlanet’s technology, multiple marketplace formats and global buyer base coupled with Cat Auction Services’ live, onsite auction format and deep equipment expertise will provide the most powerful and complete suite of auction remarketing tools in the industry,” he added.

Commenting on the deal, Hoeft said: "We are pleased to have reached this agreement as the merger will capitalise on both companies’ strengths. Cat Auction Services was started in 2008 to give Cat dealers another distribution channel for used equipment sales, as well as to keep our customers connected with the Caterpillar family of products and dealerships."

According to him, IronPlanet’s and Cat Auction Services’ innovative live and online auctions will be backed by a full range of support services to provide a better, more flexible customer experience.

Buyers will benefit from equipment protection plans and equipment financing, as well as IronPlanet’s exclusive IronClad Assurance buyer protection programme, which assures them that they have an accurate representation of equipment condition, he stated.

Gary Trettel, the president and CEO of Cat Auction Services, said: “The live auction format from Cat Auction Services, along with IronPlanet’s online marketplaces, will give our customers the innovative solutions they are looking for to meet their inventory management requirements.”

“This is a very significant merger as both companies are industry leading and clearly complement each other. We have a unique opportunity to transform our business and position ourselves to meet the growing demand of our customers for better technology, tools, and services when buying and selling heavy equipment,” he added.

As per the deal, Owens will be chairman and CEO of the combined entity and the company will continue to be headquartered in Pleasanton, California (US), while Trettel will continue to oversee Cat Auction Services' live auction format as well as serve on the executive committee of IronPlanet.

Cat Auction Services’ office in Minnesota (US) will remain open as the Midwest office for IronPlanet. The transaction is subject to regulatory approval and other standard closing conditions, and is anticipated to be completed during the first quarter of 2015.-TradeArabia News Service