Auto Trader Group PLC (LSE:AUTO), the online car marketplace operator, is to acquire Autorama, one of the UK's largest transactional marketplaces for leasing new vehicles, which operates under the Vanarama brand.
Auto Trader will pay £150mln upfront for Autorama with a further £50mln to follow depending on how well the business performs.
As at the end of 2021, Autorama had £27mln of gross assets. It had net revenue of £26mln in 2021 and made an underlying loss of £6mln, which included marketing costs of more than £9mln.
"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,” said Nathan Coe, the chief executive officer of Auto Trader.