Australia's Carsales.com to buy 51% in U.S. firm Trader Interactive (updated)

CAR

27/06/2022 02:08

(Updates with details about the deal, CEO's comment)
    June 27 (Reuters) - Australian online auto classifieds firm
Carsales.com Ltd  CAR.AX  said on Monday it acquired the
remaining 51% stake in U.S.-based Trader Interactive for $809
million, a year after buying 49% in the Virginia-based online
advertising company.
    Carsales.com in May 2021 had paid $624 million for the stake
it already owned in Trader Interactive. Monday's deal
announcement now values Trader Interactive at an enterprise
value of $1.90 billion. (https://bit.ly/3yotPlu)   
    Melbourne-based Carsales.com also said on Monday it will
fund the buyout through an equity raising of A$1.21 billion
($839.14 million) at A$17.75 per new share — a 14.5% discount to
its last closing price.
    "The acquisition is expected to generate attractive
financial returns for shareholders with low double-digit EPS
accretion in year one," Carsales CEO Cameron McIntyre said.
    Along with the deal announcement, Carsales.com also said
performance in the first five months of fiscal 2022 "reflects
continued healthy levels of demand" in the Australian automotive
and non-automotive markets.
    It expects adjusted net profit after tax of between A$194
million and A$196 million for fiscal 2022, higher than last
year's A$153 million. 

($1 = 1.4420 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru; Editing by Rashmi
Aich and Uttaresh.V)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))