Trade Me to Buy MotorWeb in a deal of NZ$19.5 Million

Trade Me to Buy MotorWeb in a deal of NZ$19.5 MillionIn a statement, Trade Me Ltd. (TME. NZ) said it has agreed to buy Auckland-based business MotorWeb for 19.5 million New Zealand dollars (US$16 million).

The sale expected to be completed later this month. The company has forecasted earnings before interest tax depreciation and amortization for the year to March 31 2014, of NZ$4.1 million.

Trade Me says it is recognised as providing a "one-stop shop" for the motor vehicle industry via its suite of more than a dozen products and services.

Patrick Costigan, founded MotorWeb  in 1997 and began trading in 2000, with the company based in Auckland and operating across the ANZ region.

Jon Macdonald, Trade Me's CEO said, MotorWeb was a great fit, given its great reputation and strong expertise in vehicle data.

He said,"The MotorWeb business has a lot of potential to complement our existing Trade Me Motors business, and will give us the chance to broaden and deepen the products and data we provide in relation to motor vehicles."

Macdonald added that twelve MotorWeb staff would move across to join the Trade Me Motors team early next year.

He also mentioned, "We've had a longstanding business partner relationship with MotorWeb in place for many years, and we know they run an excellent business. It's exciting to have them coming on board."