European capital goods exchange GoIndustry is to join forces with a US counterpart,creating a £16m a year online marketplace for used and surplus industrial equipment.
The deal will merge GoIndustry with AssetTrade, a Pennsylvania-based business which was formed in 1998 as a joint venture between two of the US’s biggest auction houses.
The GoIndustry group already includes several major European industrial auction operations, including Germany’s Karner & Co. It offers industrial customers a mix of online and ‘real world’ services to value, market and auction used and surplus assets.
As other online marketplaces went to the wall, GoIndustry managed to attract a number of major users in Europe and the Middle East, and persuaded several of them – including Alcoa and Du Pont – to invest.
However, it was always unclear how GoIndustry was going to achieve its ambitions to offer a global trading platform alone, and a major merger or acquisition was widely expected.
AssetTrade is used by several of the same customers as GoIndustry to carry out equipment transactions in the Americas and Asia, leaving the merged entity with a foothold in most of the world’s major industrial markets.
GoIndustry claimed that following the merger it will reach break-even before its original target of the end of 2002.
It is unclear whether the new company will be called GoIndustry or AssetTrade, as both are strong brand names in their respective markets.