AutoTrader.ca looking to sell - Deal Pending?

[craigh]

http://www.reuters.com/article/us-tradercorp-m-a-idUSKCN0Z22VV

I've been hearing rumours that this is solidifying into a deal very quickly.
Haven't heard specifics on the buyer, but sounds like US private equity deal?

Excited to see how this plays out.
Anyone hear anything else on the matter?

 

[Jeff Kershner]

@craigh how long has Apax them?

 

[craigh]

Apax made their investment in TRADER Corporation in 2011.
I would assume the ideal candidate here is Cox Automotive. Gives them a firm foothold in Canada to springboard an entire ecosystem of products.

TRADER sells the Dealer.com (older version I believe) websites as well, so it's more than a classifieds deal.

 

[Jeff Kershner]

Apax made their investment in TRADER Corporation in 2011.
I would assume the ideal candidate here is Cox Automotive. Gives them a firm foothold in Canada to springboard an entire ecosystem of products.

TRADER sells the Dealer.com (older version I believe) websites as well, so it's more than a classifieds deal.

Yes, it's always been my understanding that Trader / AutoTrader.ca acquired and resold an array of items to Canadian dealers, just as it does here in the states.

Our northern partners have shared some larger industry news and grief here in the past:

http://forum.dealerrefresh.com/threads/dealer-com-autotrader.406
http://www.dealerrefresh.com/canada's-autotrader-ca-corporation-partners-with-vauto/
http://www.dealerrefresh.com/trader-buys-percentage-dealer-com/​

 

[ErikJonker]

autotrader.ca was offering the oldest versions of the dealer.com offerings for a long time and couldn't access newer dealer.com offerings to sell to dealers for a long time. They couldn't even offer chat on any of their sites for a long time. If cox buys then tradercorp may get all the dealer.com offerings right??

@craigh wondering if you have noticed with your dealers cargurus in canada and whether its turning out to be a viable competitor to trader.ca?

I'm on the westcoast and kijiji doesn't compete out here so I'm always looking for alternatives...

 

[craigh]

CarGurus came in hot with great SEO and a big marketing budget. In Ontario they've been doing well at 10% of Trader's price.
Most of the other listings sites didn't grow enough with consumers yet, other than Kijiji.

I've got a few clients dropping Trader right now because they're being charged over $1000 a week.

 

[craigh]

Yes, it's always been my understanding that Trader / AutoTrader.ca acquired and resold an array of items to Canadian dealers, just as it does here in the states.

For some of these vendors they even signed 5++ year exclusivity contracts. This is part of what has held them back in Canada, because they can't switch technology partners even if they want to (in some areas).

 

[craigh]

https://thomabravo.com/2016/07/01/thoma-bravo-to-acquire-trader-corporation/

There it is.

C$1.575 billion (~$1.2 billion USD)

 

[Jeff Kershner]

And from the desk of @CliffBanks http://www.thebanksreport.com/news/private-equity-group-thomas-bravo-acquire-autotrader-ca-parent/

 

[craigh]

And from the desk of @CliffBanks - http://www.thebanksreport.com/news/private-equity-group-thomas-bravo-acquire-autotrader-ca-parent/

"Trader Corp. is basically the only digital marketing company serving Canadian dealers. "

That one made me laugh out loud.
They barely qualify as a Digital Marketing Company and we also have multiple other classifieds sites and Digital Marketing companies that offer far more options at a much higher level of service.
Almost every dealership in Canada wants to see them go away forever.