REG - Auto Trader Grp - Completion of Acquisition of Autorama (UK) Limited

Auto TraderAnnouncement

22/06/2022 15:45

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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 £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 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 (mailto: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/
(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/
(https://www.vanarama.com/)

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