Auto Trader Group plc Completion of Acquisition of Autorama (UK) Limited (8490P)
23 June 2022 - 12:34AM
UK Regulatory
TIDMAUTO
RNS Number : 8490P
Auto Trader Group plc
22 June 2022
22 June 2022
AUTO TRADER GROUP PLC
Completion of the acquisition of Autorama (UK) Limited
Auto Trader Group plc (LSE: AUTO, "Auto Trader" or the
"Company"), the UK's largest automotive marketplace, is pleased to
announce that, further to the announcement on 22 March 2022, it has
completed the acquisition of Autorama (UK) Limited, one of the UK's
largest marketplaces for leasing new vehicles.
Autorama is 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 enable Auto Trader to establish itself as a
leading marketplace for leasing new cars which is set to benefit
from 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 : "We
are pleased to have completed the acquisition of Autorama, which
will transform our leasing proposition and help us meet growing
consumer demand to lease, rather than own, new cars. The
combination of Auto Trader's large consumer audience with
Autorama's digital platform and operational capability complements
our strategy to bring more of the car buying journey online."
Andy Alderson, Chief Executive Officer at Autorama, said: "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."
Impact of the Acquisition on 2023 Outlook
- Much of the GBP150m initial consideration will be paid using
cash which has built up since the end of the last financial year.
Deferred consideration of GBP50m, settled in shares, subject to
customary performance conditions 12 months after the completion
date will be taken through the P&L as an exceptional cost
- The new car market is currently seeing subdued volumes due to
well documented supply shortages. We expect Autorama to have the
following impact on the remaining 9 months of our current financial
year:
o Net revenues of GBP18m-21m
o Delivering 11,000-14,000 vehicles
o Operating loss of GBP7m-GBP5m
- Outlook for Auto Trader's core business provided at our full year results remains unchanged
Investor calendar
The Group will hold an investor day on Tuesday 6 (th) September
2022.
This announcement contains inside information as defined in
Article 7 of the Market Abuse Regulation.
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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