Milwaukee, Wis.-based ARI Network Services has entered into agreements with various investors in a private placement of $4.8 million of common stock at a price of $1.50 per share.

In addition, the company will issue to the investors warrants to purchase 1,066,667 shares of common stock. The warrants have an exercise price of $2 per share and are exercisable for five years. The signing of the purchase agreements occurred on March 12, and the offering is expected to close on or about March 18, 2013.

ARI, which purchased assets of Duluth, Minn.-based 50 Below – including the company’s dealer website operation side – also reported its total revenue for the second quarter of fiscal 2013 increased 35.9% to $7.5 million compared to $5.5 million in for the same period in fiscal 2012, primarily as a result of the acquisition. Recurring revenue for the quarter increased 41.9% to $6.6 million, or 88.3% of total revenue, from $4.7 million, or 84.6% of total revenue, for the same period in fiscal 2012.

Total operating expenses increased 55% to $6.3 million for the three months ended January 31, 2013, compared with $4.1 million for the three months the year prior. This increase resulted primarily from the addition of the Ready2Ride and 50 Below operations, ARI noted.

“50 Below integration activities are well underway; this acquisition will be a game changer for ARI,” said Roy Olivier, ARI president and CEO. “The integration of 50 Below into ARI makes us one of the leading providers of websites to the powersports market, and the addition of Ready2Ride’s aftermarket fitment data to our product offering makes ARI one of the most comprehensive providers of eCommerce solutions to the powersports industry. This acquisition also provides us with a footprint in the automotive aftermarket industry with more than 2,000 wheel and tire dealer websites.”