PARIS, FRANCE: Eurazeo SE has announced sale of its remaining 51% stake in Virginia (USA)-based Trader Interactive to carsales, the largest online automotive advertising platform in Australia with a growing presence in Latin America and Asia. The sale of the 51% stake represents pre-tax proceeds of $350 million for Eurazeo and its affiliates, of which $238 million for Eurazeo, a news release said.
Trader Interactive is a leading platform of branded marketplaces in the United States providing digital marketing solutions and services across the commercial truck, recreational vehicle, power sports and equipment industries.
This transaction follows the acquisition by carsales in August 2021 of 49% of Trader Interactive. carsales, which operates several marketplaces across both the automotive and specialty vehicle segments, brings to Trader its extensive knowledge in building and developing scaled online marketplaces.
Under this agreement, Trader Interactive is valued at $1.897 billion corresponding to 25,0x CY 2021 Adjusted EBITDA. With this operation, Eurazeo and its affiliates show a return on a realized basis of 3.1x their original investment.
Since 2017, with the support of the Eurazeo’s Mid-large buyout team and its partner, Goldman Sachs Asset Management, Trader Interactive has significantly reinforced its leading position across each of its verticals. Through its relentless focus on building a world class technology and data platform along with targeted and strategic M&A, Trader continues to deliver increasing value to its dealers every day.
Marc Frappier, Member of the Executive Board, Managing Partner, Mid-large buyout said: “Over the last five years, Eurazeo has supported Trader Interactive in its journey to become a leading platform of branded marketplaces in the United States. This investment exemplifies our strategy to select and support market leaders across attractive industries supported by strong fundamentals and clear growth drivers.”
Vivianne Akriche, Managing Director, Mid-large buyout, added: “We are proud to have worked with the team at Trader over the last five years. This partnership with carsales will allow Trader to continue in its journey to cement its position as a leader with global ambitions. We also want to thank our partners at Goldman Sachs Asset Management for their strong partnership and support for the company.”
Eurazeo SE is a leading global investment company, with a diversified portfolio of €32 billion in assets under management, including nearly €23.2 billion from third parties, invested in 530 companies.