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Machinio Acquired by Liquidity Services International
As video gamers in middle school, Dmitriy Rokhfeld and Dan Pinto became entrepreneurs at a young age. The pair realized there was a market to sell items virtually and the idea turned into the duo’s first business. That foundation, after parting ways to go to college and re-connecting later in life, led to the duo building the technology and a company to solve one of the biggest pain points for the used machinery industry – finding and selling used equipment.
“We founded Machinio in 2012 to solve the information discovery problem,” says Rokhfeld. “We understood that we could leverage technology in a way not previously done in that industry by aggregating millions of listings from thousands of global sellers onto one platform.”
The following year, Machinio.com was launched. The global platform uses proprietary technology and data-management tools to save buyers valuable time by eliminating the need to visit dozens or hundreds of different websites and, instead, create a website where buyers could begin and complete their entire search. It also provides sellers highly effective, automated tools to reach qualified buyers.
The start-up has grown rapidly. In 2014, it established an office in Chicago, which is now Machinio’s global headquarters. In 2017, it opened its second headquarters in Berlin, Germany, because of the strong interest and demand from equipment buyers and sellers from around the globe.
To date, Machinio.com has signed more than 2,300 dealers of used equipment to annual recurring subscriptions. It also generates over 70,000 qualified buyer-seller connections per month and attracts over 600,000 highly interested buyers.
Multimillion dollar acquisition
A little over five years later, Machinio.com is being acquired for nearly $20 million by Liquidity Services International, a company that operates a network of e-commerce marketplaces in more than 500 product categories.
"This acquisition supports our strategy as the world’s largest marketplace for business surplus by expanding the services and channels we offer our sellers to maximize recovery and growing our network of buyers in important global equipment verticals,” says Bill Angrick, chairman of the board and CEO of Liquidity Services. “Machinio is delivering superior value to its customers, and our combined offering will enable us to grow our transaction volume, expand our recurring revenue service offerings, and utilize technology and innovation to improve our seller and buyer experience."
"We are excited to partner with Liquidity Services and look forward to leveraging its expertise and resources to deliver significant value to our customers. Liquidity Services’ global brand and strong relationships will further accelerate Machinio’s growth. Together, we will continue to enhance our platform and services to meet the needs of global sellers and buyers of used equipment," says Rokhfeld.
Machinio will continue to operate under its current branding and management team led by Rokhfeld and Pinto.