TIDMAUTO
RNS Number : 5726F
Auto Trader Group plc
22 March 2022
22 March 2022
AUTO TRADER GROUP PLC
Auto Trader Group plc announces acquisition of Autorama (UK)
Limited
Auto Trader Group plc (LSE: AUTO, "Auto Trader" or the
"Company"), the UK's largest automotive marketplace, has today
agreed to acquire, subject to regulatory approvals, the share
capital of Autorama (UK) Limited, one of the UK's largest
transactional marketplaces for leasing new vehicles.
Autorama has created a leading end-to-end digital platform,
which aggregates leasing deals from multiple funders and OEMs
(under its "Vanarama" brand), enabling buyers to transact online
across a wide range of vehicles.
The acquisition will transform Auto Trader's existing leasing
proposition and help to meet the demands of the growing number of
consumers who might consider leasing their next new vehicle. In
time, it will enable Autorama to leverage Auto Trader's brand to
accelerate its recent expansion, beyond light commercial vehicles,
into leasing new cars. There is a large structural opportunity for
a new car leasing marketplace driven by the growth of electric
cars, new manufacturers entering the UK market, lower take up of
company car schemes and a shift towards new digital distribution
models. Leasing provides consumers a cost-effective way to access a
new car with a model that is consistent with any future move
towards usership.
Nathan Coe, Chief Executive Officer of Auto Trader, said : "To
ensure we have the largest choice of cars to buy online, we could
not ignore the growing demand for leasing deals. In Vanarama, we
have found an industry leading leasing platform that delivers a
great consumer experience and significant sales for its partners.
This acquisition will strengthen our leasing business and will
enable us to offer both the biggest choice of vehicles and a
seamless digital experience from search to sale. I am delighted to
be welcoming Andy and his team to the Group."
Andy Alderson, Chief Executive Officer at Autorama, said: "As
the leading aggregator of leasing deals online, we have sold over
120,000 vehicles for our manufacturer, retailer and lease company
partners. Over the last few years we have invested significantly in
our technical capability to help our partners respond to the high
levels of consumer demand for a digital buying experience. We are
hugely excited about the prospect of being able to accelerate our
growth plans and deliver even more value to our partners as part of
the Auto Trader Group."
Transaction details
Auto Trader will pay initial consideration of GBP150m in cash,
with a further GBP50m of deferred consideration to be settled in
shares subject to customary performance conditions 12 months after
the completion date. Once issued, the shares will vest over a
period of two years in two 12 month instalments. At 31 December
2021, Autorama had GBP27m of gross assets and for the calendar year
2021, made net revenue of GBP26m, selling c.14,500 vehicles and had
an EBITDA loss of GBP6m, which included marketing costs of over
GBP9m.
Completion of the transaction will be subject to applicable
regulatory approvals.
This announcement contains inside information as defined in
Article 7 of the Market Abuse Regulation.
Analyst presentation
A presentation for analysts will be held via audio webcast and
conference call at 9.30am, Tuesday 22 March 2022. Details
below.
Audio webcast: https://edge.media-server.com/mmc/p/gm88i27x
Conference call details :
Location Purpose Phone Type Number
United Kingdom, London Participant Local +44 (0) 2071 928 338
============ =========== ====================
Passcode: 2905969
Please note: Questions will only be taken from the conference
call. Participants on the conference call who also plan on
following the slides via the webcast should switch the webcast to
Phone mode using the cogwheel icon located on the bottom right
corner of the webcast screen to ensure the slides are synced to the
phone audio rather than the webcast audio.
If you have any trouble registering or accessing either the
conference call or webcast, please contact Powerscourt on the
details below.
For media information
Powerscourt (Rob Greening or Sam Austrums)
autotrader@powerscourt-group.com +44 (0)20 7250 1446
About Auto Trader
Auto Trader Group plc is the UK and Ireland's largest digital
automotive marketplace. Our marketplace sits at the heart of the
vehicle buying process, with the largest number of car buyers and
the largest choice of trusted stock. Auto Trader exists to grow
both its car buying audience and core advertising business. It will
change how the UK shops for cars by providing the best online car
buying experience, enabling all retailers to sell online. We aim to
build stronger partnerships with our customers, use our voice and
influence to drive more environmentally friendly vehicle choices
and create an inclusive and diverse culture. Auto Trader listed on
the London Stock Exchange in March 2015 and is now a member of the
FTSE 100 Index.
For more information, please visit
https://plc.autotrader.co.uk/who-we-are/about-us/
About Autorama ("Vanarama" brand)
Founded in 2004, Autorama has become one of the leading
platforms for aggregating leasing deals from multiple funders and
OEMs (under its "Vanarama" brand). Vanarama was established by CEO
Andy Alderson in 2004 and employs more than 250 people from its
headquarters in Hertfordshire and remotely across the country.
Vanarama's success has been driven by putting customer experience
at the heart of all its activities. Investing heavily in
industry-leading technology and customer service has been a major
part of its formula for growth. In 2021, Vanarama was awarded seven
gold awards at the UKCX Awards in recognition of its digital
transformation, online customer experience and commitment to
putting its customers and employees first during the Covid
pandemic. Vanarama are also proud title sponsors of The National
League, which is England's popular fifth tier of football.
For more information, please visit https://www.vanarama.com/
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END
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