As announced on Jan. 23, 2023, Ritchie Bros. Auctioneers Incorporated (Ritchie Bros.) is set to receive a combined $500 million (668,500,000 CAD) investment from Starboard Value LP and its affiliates. Of this, $485 million is for convertible preferred equity, and $15 million will buy common shares. This agreement will see Jeffrey Smith, Starboard's CEO, join the Ritchie Bros. Board of Directors, contingent upon the acquisition of IAA, Inc. by Ritchie Bros. Ann Fandozzi, CEO of Ritchie Bros., believes the investment will offer greater financial flexibility and emphasizes Starboard's confidence in the Ritchie-IAA merger. Smith, having prior investment experience with IAA, recognizes the growth potential of this transaction. The preferred shares acquired by Starboard will be convertible at $73.00 per share, a 23% premium over Ritchie Bros.' recent average trading price. These shares have an initial 5.5% dividend, payable in cash or shares. Starboard will also purchase common shares of Ritchie Bros. at roughly $59.72 per share. If the Ritchie-IAA merger fails, Ritchie Bros. can redeem the preferred shares at 102% of par plus unpaid dividends. The deal's completion depends on standard closing conditions, including regulatory approvals. More details will be shared on Ritchie Bros.' website. Jeffrey Smith, Starboard's CEO, has a vast management background with multiple companies. For this investment, Ritchie Bros. sought counsel from Goldman Sachs & Co. LLC, Guggenheim Securities, LLC, Evercore, RBC Capital Markets, and various legal advisors.