new york —Rubicon Technologies Co., Ltd. (“Rubicon” or the “Company”) (NYSE: RBT), a leading provider of technology solutions for waste, recycling and fleet operations, today announced the sale of its fleet technology business and the transfer of Rubicon's convertible preferred stock to Rodina. announced that it had been published. Capital, a Florida-based private investment firm, is handling the sale for a total of $94.2 million. This includes upfront payments and earn-out consideration of $74.2 million, payable in 2024, and the issuance of $20 million of convertible preferred stock. The Independent Special Committee of the Rubicon Board of Directors and the Rubicon Board of Directors approved the transaction.
These transactions are transformational for the company, ensuring the long-term viability of Rubicon, improving our balance sheet by reducing debt and providing additional liquidity, and enabling us to quickly achieve our business objectives. achievement, accelerate profitability initiatives in the short term, and enable continued business continuity. long-term growth trajectory. Importantly, this marks a return to Rubicon's core principles: a business centered around the customer-focused approach that has contributed to the company's growth from the beginning. This strategic move highlights Rubicon's dedication. Rubicon Connect™ The product serves commercial waste generators ranging from small businesses to Fortune 500 companies. Many of our commercial customers, including those we recently launched, look to Rubicon to help them achieve their sustainability goals with customized zero waste and circular economy solutions. Technical Advisory Services (TAS). The sale and new funds will be used to improve service and strengthen Rubicon's long-standing relationships with its more than 8,000 vendor and carrier partners, 90% of whom are small independent businesses. .
“Through these transactions, Rubicon has significantly strengthened its balance sheet and is now able to inject significant cash into its business to achieve its ambitious goals,” said Phil Rodoni, Rubicon's CEO. said. “This is a transformational moment for Rubicon and is in line with our strategic vision to lead the industry by innovating and investing in sustainable practices that meet the evolving needs of both our carrier network and customer base. We are excited to leverage this newfound financial agility to drive growth, strengthen our competitive position, and deliver exceptional value to both our shareholders and customers.”
“This is a transformational sale for Rubicon,” said Osman Ahmed, lead independent director of Rubicon's board of directors. “This not only provides us with the financial strength we need to continue our aggressive growth plans, but also allows management to focus their time and efforts solely on Rubicon's core business.”
Rubicon's Fleet Technology division is a fast-growing SaaS technology business that powers critical large-scale fleet operations in more than 100 cities, including cities such as Houston, Phoenix, Miami, Atlanta, and Kansas City. Six of the top 10 cities by population use RUBICONSmartCity products to improve the safety and efficiency of core municipal operations and save taxpayers money.
The Fleet Technology business unit will now operate as a private software company under a new name, which will be announced shortly.
Connor Riffle, Rubicon's senior vice president of smart cities, said: “This transaction allows us to focus on rapid growth, an incredible customer base, and cutting-edge technology innovation for the waste and recycling, snow removal, and street cleaning markets. We are proud to partner with a family office that has a long-term view of its financial resources to pursue growth.”
advisor
Winston & Strawn LLP served as Rubicon's legal advisor and Cantor Fitzgerald & Co. served as Rubicon's exclusive financial advisor during the transaction.
About Rubicon
Rubicon builds AI-enabled technology products and provides specialized sustainability solutions to waste generators, fleet managers, and material processors to help them understand, manage, and reduce waste. As a mission-driven company, Rubicon helps customers improve operational efficiency, unlock economic value and achieve better environmental outcomes. If you would like to learn more please visit: rubicon.com.
