Carsales (ASX:CAR) seals 49% acquisition of Trader Interactive; key things to know

September 01, 2021 09:20 AM AEST

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Carsales (ASX:CAR) seals 49% acquisition of Trader Interactive; key things to know — Image source: brillenstimmer,Shutterstock

Highlights

Carsales.com announced completion of the acquisition of 49% of leading US digital marketplace business Trader Interactive.

The acquisition follows the prior announcement made by the company on 12 May 2021.

In FY20, Carsales reported a 1% rise in adjusted revenue to AU$423 million compared to the last fiscal.

Carsales.com Ltd (ASX:CAR) on Wednesday announced completion of the acquisition of 49% of leading US digital marketplace business Trader Interactive. The acquisition follows the prior announcement made by the company on 12 May 2021.

The automotive company said that the acquisition was funded through a combination of the successful AU$600 million fully underwritten pro-rata accelerated renounceable entitlement offer and an upsize of CAR’s existing debt facilities.

Source: © Transversospinales | Megapixl.com

Carsales’ FY20 results

In FY20, Carsales reported a 1% rise in adjusted revenue to AU$423 million compared to the last fiscal. EBITDA surged 6% to AU$237 million. EBITDA margins stood at 55%. The company also announced a final dividend of 25 cents per share which was on par with FY19.

The company witnessed a strong rebound in demand for vehicles across multiple international markets as a driver of growth amid the challenges posed by the coronavirus pandemic. Carsales expected to clock in a revenue between AU$433 million and AU$437 million in FY21. It also expects to boost its net profit after tax (NPAT), forecasting estimates between AU$149 million and AU$153 million for the year.

Bottom Line

Carsales shares have delivered strong returns to the shareholders so far this year, hitting record highs. The stock price is up 26% so far this year. On Tuesday, the stock closed at AU$24.67.

Source: © Robynmac | Megapixl.com

The company expects to do well going forward due to new growth opportunities in the sector. “The accelerated digitisation in the automotive industry and changes in consumer behaviour are creating new growth opportunities for carsales, which positions us well for FY22 and beyond,” said Group CEO of carsales, Cameron McIntyre in the earnings report.