Thu, 23 Jun 2022 | BUSINESS SALE
Auto Trader has completed the acquisition of new vehicle leasing platform Autorama, in a deal that could rise to £200 million. An initial consideration of £150 million was paid upon completion, with an additional £50 million deferred consideration, which is subject to certain performance conditions.
If the full £200 million was to be paid, this would represent slightly over a 15.8x multiple of Autorama’s gross profits of £12.6 million for the year ending December 31 2020, generated on turnover of £63.7 million. In those results, the company reported a post-tax loss of £8.1 million.
Autorama, which trades as Vanarama, was founded in 2004 by Andy Alderson (pictured above) as a used vehicle dealer, before moving in to B2B commercial vehicle leasing in 2007. The company has gone on to become one of the UK’s leading lease dealers, selling more than 120,000 vehicles so far.
The company’s digital platform aggregates leasing deals from a range of funders and OEMs (original equipment manufacturers). Auto Trader says that acquiring Autorama will help it to “establish itself as a leading marketplace for leasing new cars”.
Auto Trader adds that the leasing market “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".
Post-acquisition, Auto Trader says it expects Autorama to generate net revenues of between £18 million and £21 million for the remainder of the financial year. However, it expects the business to register an operating loss of around £5 million to £7 million.
Commenting on the acquisition, Auto Trader CEO Nathan Coe 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.”
Read more about the factors spurring M&A in the automotive sector.
Find businesses for sale here.
If you are looking for an exit, we can help!.
The company produces and supplies a wide range of coffee products created using ethically sourced beans from South America. The core products comprise wholebeans, grounds, single-origin roasts, blends, cold brews and compostable pods.
LEASEHOLD
The company offers an extensive range of luxury cars, including vehicles from prestigious manufacturers such as Aston Martin, Ferrari, Lamborghini and Rolls Royce. The business operates with a unique showroom-free approach, utilising a dedicated onli...
FREEHOLD
The company offers the sale of fashion jewellery, lingerie, and sexual health products and toys, pyjamas, gym clothing, beachwear, and PPE. Priding itself on its high-quality products and exceptional customer service, the company offers its produc...
LEASEHOLD