Last checked at 22 Jun 2022 15:34
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 £150m initial consideration will be paid using cash which has built up since the end of the last financial year. Deferred consideration of £50m, 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 £18m-21m
o Delivering 11,000-14,000 vehicles
o Operating loss of £7m-£5m
- 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 6th 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/