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- Release Date: 30/04/12 12:35
- Summary: ASSET: TME: Trade Me purchases AutoBase
- Price Sensitive: No
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TME
30/04/2012 10:35
ASSET
REL: 1035 HRS Trade Me Group Limited
ASSET: TME: Trade Me purchases AutoBase
Announcement: Trade Me
30 April 2012
Trade Me purchases AutoBase
Trade Me has entered into an agreement to purchase the vehicle listing
aggregator AutoBase Limited. A due diligence process has been completed, and
the final sale and purchase agreement was signed today.
AutoBase is an aggregator of listings from car, truck, motorcycle and boat
dealers. It has had an exclusive business arrangement in place with Trade Me
since 2003. AutoBase procures classified vehicle listings from dealers, and
Trade Me displays these advertisements on Trade Me Motors. AutoBase is also
responsible for dealer relationship management and related software
development.
Back in 2005, Trade Me acquired 25.4% of AutoBase from co-founders Hamish
Lusk and David Paviour. This transaction brings the remainder of the business
under Trade Me's ownership.
Trade Me CEO Jon Macdonald said acquiring the assets of AutoBase was a
logical move. "Hamish and David created a great business and they've been
excellent to work with as their business has grown over the past nine years.
"This acquisition will allow us to consolidate the Trade Me Motors business
line. It's business as usual for dealers except we'll have direct
relationships with them, in much the same way as we operate our other
classified businesses Trade Me Property and Trade Me Jobs."
The AutoBase directors said they were pleased to reach an agreement. "This is
a good thing for our customers and staff, and we're looking forward to seeing
the business continue to thrive as part of Trade Me Motors."
About AutoBase:
FY12* EBIT: $3.2m (up 18.5% YoY)
FY12* NPAT: $2.3m
Staff as at 31 March 2012: 16
Dealer customers as at 31 March 2012: 935
Live listings on Trade Me Motors: 39,225
* Based on FY ending 31 March 2012.
About the transaction:
Purchase price: $15.5m
Effective purchase price (for remaining 74.6% of the business): $11.5m
EBIT multiple: 4.8
NPAT multiple: 6.7
The transaction is cash funded and settles today.
-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:00222329 For:TME Type:ASSET Time:2012-04-30 10:35:10
