Apax to Buy 30% Ownership of Dealer.com
The change in minority ownership follows an announcement that Yellow Media, who previously owned an approximately 30 percent stake in Dealer.com, is selling Trader Corporation, which includes its ownerships stake in Dealer.com to Apax Partners.
Closing of the contemplated transaction is expected to occur in June 2011, subject to regulatory approvals and other customary conditions.
The new ownership comes on the heels of several years of sustained growth for Dealer.com, with revenues reaching $85m in 2010, an increase of over 60 percent from 2009 and more than triples the 2008 level.
The new ownership is not expected to impact the daily operations of Dealer.com, interactions with its customers or employees, or implementation of its services.
Mark Bonfigli, CEO of Dealer.com, said: â€œWe welcome the opportunity to work with Apax as a new business partner and shareowner, as this presents an opportunity to benefit from their business experience and resources as we continue to grow our operations.
â€œWe greatly appreciate everything that Yellow Media has done for us as an investor and have enjoyed working with them tremendously.â€
Mitch Truwit, partner at Apax Partners, said: â€œWe also look forward to partnering with the founders of Dealer.com and support the business on its strong growth trajectory. This is a very exciting online opportunity in a sector that Apax knows very well thanks to our existing investments in Trader Media Group in the UK, Bankrate in the US and SouFun in China.
â€œWe will use this expertise to work with the management of Trader Auto and invest in the heritage Auto Trader brand to realize its full potential and allow it to enhance its leadership position.â€
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