In the age of technology, our society has grown increasingly fickle. Those latest and greatest smartphones and tablets that rival laptops and televisions in cost and specs will most likely be shuffled to the side for the next latest and greatest product in a mere nine to twelve months. Those discarded devices will have to settle for one of two fates: being traded in for a fraction of what was spent on the device; or worse, end up in a landfill.
Consumer technology, once considered an investment purchase, has become disposable. With constant yearly upgrades available in the mobile and home computer market, how can an environmentally conscious society reduce plastic waste and keep up with the latest mobile trends? That question is at the heart of uSell.com (USEL). The US-based company has recently completed a major deal that will bring much needed relief to consumers and the environment.
uSell, the leading US-based recommerce marketplace that instantly finds cash offers for used smartphones and electronics,announced that the company has acquired We Sell Cellular LLC, a top tier smartphone wholesaler, in exchange for 9.36 million shares of common stock. With We Sell Cellular having achieved trailing 12 month revenues of $61 million with adjusted EBITDA of $2.8 million, the combined company will be cashflow positive from day one, and on a steep growth trajectory.
"This is a watershed moment for our company," said Nik Raman, CEO of uSell. "The combination of We Sell Cellular's financial strength, access to supply and expertise, and uSell's technology, buyer network, and access to capital is extremely synergistic, and provides the combined company with opportunities that were previously unavailable to us separately. We Sell Cellular has built a strong brand in the wholesale industry due to its highly accurate triage methods and its track record of great service. uSell has built industry-leading marketplace technology as well as a platform to make the triage process more efficient. uSell's technology can help We Sell Cellular to scale more efficiently, while extracting maximum value from used devices."
A New Way to Cash in on Used Devices
Transforming the way people change up their technology, uSell has simplified the way people sell their used devices. Unlike popular resale outlets, such as eBay (EBAY) and Craigslist, uSell creates a marketplace where sellers are presented offers from professional buyers instead of anonymous users. Furthermore, there are no hidden fees or haggling. The primary business of We Sell Cellular is to buy used smartphones that have been traded in with the major carriers and the big box retailers, fully inspect and triage these devices, and then sell these devices wholesale and retail. uSell’s transformational deal with We Sell Cellular places uSell in a prime position to take advantage of new purchasing trends.
"The deal with We Sell Cellular enables us to leapfrog our competitors that are focused on a pure direct-to-consumer model," said Raman. "The decision by Verizon (VZ) to eliminate subsidies and the recent announcement by Apple (AAPL) to offer its own leasing and early upgrade program will result in significant expansion in the wholesale trade in market. uSell will be in prime position to take advantage of these trends over the next 18 months."
The relationship between uSell and We Sell Cellular began in the second quarter of 2015. The company expanded into the wholesale trade-in market with the launch of its uSell Auctions platform, where We Sell Cellular was an early participant.
What’s good for customers (and the environment) is good for business. Together, uSell’s marketplace and efficient platform working in tandem with We Sell Cellular’s talent and supply access, presents promising growth prospects by getting customers cash fast and keeping those perfectly working phones out of landfills.
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