# Auto Trader Group to acquire Autorama (UK) Limited

- Link: https://www.directorstalkinterviews.com/auto-trader-group-to-acquire-autorama-uk-limited/4121057782
- Published: 2022-03-22T07:19:53+00:00
- Author: Amilia Stone

**[Auto Trader Group plc](https://www.directorstalkinterviews.com/ftse-company/auto-trader-group/auto.l)**(
LON:AUTO), the UK’s largest automotive marketplace, has agreed to acquire, subject
to regulatory approvals, the share capital of Autorama (UK) Limited, one of the 
UK’s largest transactional marketplaces for leasing new vehicles.

Autorama has created a leading end-to-end digital platform, which aggregates leasing
deals from multiple funders and OEMs, enabling buyers to transact online across 
a wide range of vehicles.

The acquisition will transform Auto Trader’s existing leasing proposition and help
to meet the demands of the growing number of consumers who might consider leasing
their next new vehicle. In time, it will enable Autorama to leverage Auto Trader’s
brand to accelerate its recent expansion, beyond light commercial vehicles, into
leasing new cars. There is a large structural opportunity for a new car leasing 
marketplace driven by 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. Leasing provides consumers a cost-effective way to access a
new car with a model that is consistent with any future move towards usership.

> **Andy Alderson, Chief Executive Officer at Autorama, said:** “As the leading 
> aggregator of leasing deals online, we have sold over 120,000 vehicles for our
> manufacturer, retailer and lease company partners. Over the last few years we 
> have invested significantly in our technical capability to help our partners respond
> to the high levels of consumer demand for a digital buying experience. We are 
> hugely excited about the prospect of being able to accelerate our growth plans
> and deliver even more value to our partners as part of the Auto Trader Group.”

**Transaction details**

Auto Trader will pay initial consideration of £150m in cash, with a further £50m
of deferred consideration to be settled in shares subject to customary performance
conditions 12 months after the completion date. Once issued, the shares will vest
over a period of two years in two 12 month instalments. At 31 December 2021, Autorama
had £27m of gross assets and for the calendar year 2021, made net revenue of £26m,
selling c.14,500 vehicles and had an EBITDA loss of £6m, which included marketing
costs of over £9m.

Completion of the transaction will be subject to applicable regulatory approvals.

This announcement contains inside information as defined in Article 7 of the Market
Abuse Regulation.

**Analyst presentation**

A presentation for analysts will be held via audio webcast and conference call at
9.30am, Tuesday 22 March 2022. Details below.

Audio webcast: [https://edge.media-server.com/mmc/p/gm88i27x](https://edge.media-server.com/mmc/p/gm88i27x)

**Conference call details**:

| Location | Purpose | Phone Type | Number | 
| United Kingdom, London | Participant | Local | +44 (0) 2071 928 338 |

Passcode: 2905969

**Please note: **Questions will only be taken from the conference call. Participants
on the conference call who also plan on following the slides via the webcast should
switch the webcast to _Phone mode_ using the cogwheel icon located on the bottom
right corner of the webcast screen to ensure the slides are synced to the phone 
audio rather than the webcast audio.

> **Nathan Coe, Chief Executive Officer of Auto Trader, said**: “To ensure we have
> the largest choice of cars to buy online, we could not ignore the growing demand
> for leasing deals. In Vanarama, we have found an industry leading leasing platform
> that delivers a great consumer experience and significant sales for its partners.
> This acquisition will strengthen our leasing business and will enable us to offer
> both the biggest choice of vehicles and a seamless digital experience from search
> to sale. I am delighted to be welcoming Andy and his team to the Group.”

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