Carsales (ASX:CAR) to buy remaining stake in US Trader Interactive

Company News

by Lauren Evans

Carsales.Com (ASX:CAR) is set to acquire the remaining 51 per cent stake in US digital marketplace business Trader Interactive for around $1.2 billion (US$809 million).

Carsales said the acquisition presents a significant opportunity to grow in the US non-automotive market, which is 16 times the size of the Australian non-automotive market. This comes only 13 months after Carsales signed a deal to buy an initial 49 per cent stake for $797 million (US$624 million.)

Trader Interactive provides digital marketing solutions and services across the recreational vehicle, powersports, commercial truck and equipment industries.

The acquisition will be funded via a $1.2 billion fully underwritten 1 for 4.16 pro-rata accelerated non-renounceable entitlement offer. The entitlement offer will be conducted at $17.75 per new share, which represents a 14.5 per cent discount to the last closing price on Friday.

Carsales will also seek to upsize its debt facilities from $900 million to $1.4 billion to replace the existing $562 million debt facility at Trader Interactive.

The acquisition remains subject to conditions, which are expected to be satisfied in the late first quarter of FY23.

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?