(Alliance News) - Auto Trader Group PLC on Tuesday said it has acquired Autorama UK Ltd, a UK-based digital leasing platform focused on new vehicles.
Digital automotive marketplace Auto Trader will fork out an initial GBP150 million, with a further GBP50 million of deferred consideration to be settled in shares, subject to performance conditions.
Auto Trader explained there was 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, it said.
Chief Executive Nathan Coe said: "To ensure we have the largest choice of cars to buy online, we could not ignore the growing demand for leasing deals...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."
In 2021, Autorama made a loss before interest, tax, depreciation and amortisation of GBP6 million, on net revenue of GBP26 million.
Auto Trader shares were 0.6% lower at 672.18 pence each in London on Tuesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Auto Trader (AUTO)