Business
Completion of Acquisition of Autorama (UK) Limited
Completion of Acquisition of Autorama (UK) Limited.
About this update from Autotrader Group Plc
[{"type":"text","content":"\n \n \n \n 22 June 2022\n \n \n \n \n AUTO TRADER GROUP PLC\n \n \n \n \n Completion of the acquisition of Autorama (UK) Limited\n \n \n \n Auto Trader Group plc (LSE: AUTO, \"Auto Trader\" or the \"Company\"), the UK's largest automotive marketplace, is pleased to announce that, further to the announcement on 22 March 2022, it has completed the acquisition of Autorama (UK) Limited, one of the UK's largest marketplaces for leasing new vehicles.\n \n \n Autorama is a leading end-to-end digital platform, which aggregates leasing deals from multiple funders and OEMs (under its \"Vanarama\" brand), enabling buyers to transact online across a wide range of vehicles.\n \n \n The acquisition will enable Auto Trader to establish itself as a leading marketplace for leasing new cars which 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. Leasing provides consumers a cost-effective way to access a new car with a model that is consistent with any future move towards usership.\n \n \n Nathan Coe, Chief Executive Officer of Auto Trader, said\n : \"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.\"\n \n \n Andy Alderson, Chief Executive Officer at Autorama, said:\n \"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.\" \n \n \n \n Impact of the Acquisition on 2023 Outlook\n \n \n \n - \n Much of the £150m initial consideration will be paid using cash which has built up since the end of the last financial year.\n Deferred consideration of £50m, settled in shares, subject to customary performance conditions 12 months after the completion date will be taken through the P&L as an exceptional cost\n \n \n - \n The new car market is currently seeing subdued volumes due to well documented supply shortages. We expect Autorama to have the follow...