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- Release Date: 12/12/13 11:37
- Summary: ASSET: TME: Trade Me purchases MotorWeb
- Price Sensitive: No
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TME
12/12/2013 09:37
ASSET
REL: 0937 HRS Trade Me Group Limited
ASSET: TME: Trade Me purchases MotorWeb
Announcement: Trade Me
12 December 2013
Trade Me purchases vehicle data experts MotorWeb
Trade Me has entered into an agreement to buy Auckland-based business
MotorWeb (motorweb.co.nz) for NZ$19.5m. The deal is conditional but expected
to be completed later this month. The transaction is cash funded.
MotorWeb is an online business that packages and sells motor vehicle
information and reports to finance companies, insurers, car dealers and the
general public. It is recognised as providing a "one-stop shop" for the motor
vehicle industry via its suite of more than a dozen products and services.
MotorWeb was founded by Patrick Costigan in 1997 and began trading in 2000.
It is based in Auckland and operates in both New Zealand and Australia.
Trade Me CEO Jon Macdonald said MotorWeb was a great fit, given its great
reputation and strong expertise in vehicle data. "The MotorWeb business has a
lot of potential to complement our existing Trade Me Motors business, and
will give us the chance to broaden and deepen the products and data we
provide in relation to motor vehicles."
Mr Macdonald said twelve MotorWeb staff would move across to join the Trade
Me Motors team early next year. "We've had a longstanding business partner
relationship with MotorWeb in place for many years, and we know they run an
excellent business. It's exciting to have them coming on board."
MotorWeb managing director Chris Knight said he was pleased Trade Me had
bought the business. "It's a perfect fit - both Trade Me and MotorWeb
understand the power of providing people with transparent and accurate data
to empower their purchasing decisions.
"We've known the Trade Me team for a long time and we think this is great
news for our clients on both sides of the Tasman, as well as for our staff.
It's another exciting chapter in the life of MotorWeb and we're looking
forward to seeing MotorWeb continue to grow as part of a great Kiwi company."
About MotorWeb
F13* EBITDA: $3.7m (Forecast F14* EBITDA: $4.1m)
F13* NPAT: $2.3m
Staff as at 12 December 2013: 12
Clients as at 12 December 2013: 900
About the transaction:
Purchase price: $19.5m
F13 EBITDA multiple: 5.3 (Forecast F14* EBITDA multiple: 4.8)
NPAT multiple: 8.3
* Based on year to 31 March
-ends-
Contact: Paul Ford, Trade Me, +64 4 803 2611, [email protected]
More info: Trade Me investor website: http://investors.trademe.co.nz/
End CA:00245080 For:TME Type:ASSET Time:2013-12-12 09:37:07
