Sharechat Logo

Trade Me buys MotorWeb site for $19.5 M to expand auto offering

Thursday 12th December 2013 1 Comment

Text too small?

Trade Me, the auction website, agreed to acquire MotorWeb for $19.5 million in cash to deepen its motor vehicle offering by adding a business forecast to lift earnings in 2014.

Auckland-based MotorWeb had earnings before interest, tax, depreciation and amortisation of $3.7 million in the year ended March 31, and expects to lift earnings on the basis to $4.1 million in the current year. The purchase price is at a multiple of 5.3 times 2013 EBITDA and 4.8 times forecast 2014 earnings, Trade Me said.

MotorWeb packages and sells motor vehicle information and reports to finance companies, insurers, car dealers and the general public, providing a "one stop shop for the motor vehicle industry via its suite of more than a dozen products and services," it said in a statement to the NZX. The business was founded by Patrick Costigan in 1997 and began trading in 2000, with operations in New Zealand and Australia.

"The MotorWeb business has a lot of potential to complement our existing Trade Me Motors business, and will give us the chance to broaden and deepen the products and data we provide in relation to motor vehicles," said Trade Me chief executive Jon Macdonald.

Trade Me shares traded unchanged at $4.22 and have gained 6.8 percent this year.

 

BusinessDesk.co.nz

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  General Finance Advertising    

Comments from our readers

On 27 December 2013 at 9:29 pm EugelLong said:
Car is essential for every man’s life. Do you want latest model car? We will manage it all. To get more information visit www.buyrightcars.co.nz/
Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar sags after avalanche of data and central bank action
Fonterra board starts planning chair succession
Fulton Hogan keeps Australian civil construction unit
Time for congestion pricing has come - NZIER
Colliers defends KiwiBuild as 'far from a colossal failure'
Pushpay shares rise as cost-cutting upgrades earnings guidance
20th September 2019 Morning Report
NZ dollar weaker against British pound on EC president's Brexit optimism
Todd plans Kapuni drilling campaign
MARKET CLOSE: NZ shares gain; appetite for KFC helps Restaurant Brands hit record

IRG See IRG research reports