Online car buying website Carsales.com Limited (ASX:CRZ)
will spend $60.1 million to acquire a controlling stake in Australia’s largest car finance broker Stratton Finance.
Carsales.com will take a 50.1 per cent stake in Stratton Finance and fund the purchase with existing cash reserves and debt.
Stratton Finance was established in 1998 and offers a range of finance and insurance solutions for cars, boats, commercial vehicles, business equipment and property.
Carsales CEO and Managing Director Greg Roebuck says Stratton Finance is a natural fit and the transaction will bring together two businesses with very similar DNA and operating styles.
Carsales.com reported a net profit of almost $44 million in the first half of the 2014 financial year.