Carsales (ASX:CAR) to buy remaining stake in US Trader Interactive

27/06/2022 14:00:00

Carsales.Com (ASX:CAR) is set to acquire the remaining 51 per cent stake in US digital marketplace business Trader Interactive for around $1.2 billion (US$809 million).

Carsales said the acquisition presents a significant opportunity to grow in the US non-automotive market, which is 16 times the size of the Australian non-automotive market. This comes only 13 months after Carsales signed a deal to buy an initial 49 per cent stake for $797 million (US$624 million.)

Trader Interactive provides digital marketing solutions and services across the recreational vehicle, powersports, commercial truck and equipment industries.

The acquisition will be funded via a $1.2 billion fully underwritten 1 for 4.16 pro-rata accelerated non-renounceable entitlement offer. The entitlement offer will be conducted at $17.75 per new share, which represents a 14.5 per cent discount to the last closing price on Friday.

Carsales will also seek to upsize its debt facilities from $900 million to $1.4 billion to replace the existing $562 million debt facility at Trader Interactive.

The acquisition remains subject to conditions, which are expected to be satisfied in the late first quarter of FY23.