Menu
Trade Me receives $2.5B private equity bid

Trade Me receives $2.5B private equity bid

Offer represents 25.5 per cent premium to Trade Me's last close of $5.1

Online marketplace operator Trade Me has been approached by British private equity player Apax Partners with a $2.54 billion takeover offer.

Apax is offering $6.4 for each share of Trade Me, representing a 25.5 per cent premium to the company’s last close of $5.1.

“The Board of Trade Me, together with its advisers, has reviewed the indicative proposal and has decided to engage with Apax,” a company statement read. “Trade Me has provided Apax with due diligence access on an exclusive basis until 12 December to facilitate a binding offer.

"This exclusive access is subject to a “fiduciary carve out” that permits Trade Me to engage with third parties should it receive any unsolicited proposals.”

According to a statement released via the New Zealand stock exchange (NZX), this indicative proposal is subject to a number of conditions, including the completion of due diligence.

With market development updates expected in due course, the board also added that there is “no certainty” the indicative proposal will result in an offer or any other transaction for Trade Me.

Headquartered in London, Apax is a private equity firm with presence across New York, Hong Kong, Mumbai, Tel Aviv, Munich and Shanghai.

According to the firm’s website, funds advised by Apax typically invest in large companies with an enterprise value between €1 billion and €5 billion, spanning sectors such as technology, telecommunications, services, healthcare and consumer.

Key technology investments include Sophos, Smart Technologies and ThoughtWorks, in addition to Epicor, Orange and Exact Software.

Stronger growth

Launched in 1999 with around 15 staff, Trade Me now has over 600 employees and is the most popular online marketplace and classified advertising platform in New Zealand.

The website offers auctions and fixed-priced sales for cars, real estate and other household items, in addition to jobs and online dating services.

As reported by Reseller News, Trade Me CEO Jon Macdonald announced in June that he will step away from the business by the end of the year.

Furthermore, Trade Me had a more than two per cent rise in net profit for fiscal 2018 - it had also forecast a stronger performance in 2019.

(Additional reporting by Ambar Warrick in Bengaluru; editing by Andrew Roche and Dan Grebler - Reuters)


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Trade Me

Featured

Slideshows

Reseller News Innovation Awards 2019: meet the winners

Reseller News Innovation Awards 2019: meet the winners

Reseller News honoured the standout players of the New Zealand channel in front of more than 480 technology leaders in Auckland on 23 October, recognising the achievements of top partners, emerging entrants and innovative start-ups.

Reseller News Innovation Awards 2019: meet the winners
Malwarebytes shoots the breeze with channel, prospects

Malwarebytes shoots the breeze with channel, prospects

A Kumeu, Auckland, winery was the venue for a Malwarebytes event for partner and prospect MSPs - with some straight shooting on the side. The half-day getaway, which featured an archery competition, lunch and wine-tasting aimed at bringing Malwarebytes' local New Zealand and top and prospective MSP partners together to celebrate recent local successes, and discuss the current state of malware in New Zealand. This was also a unique opportunity for local MSPs to learn about how they can get the most out of Malwarebytes' MSP program and offering, as more Kiwi businesses are targeted by malware.

Malwarebytes shoots the breeze with channel, prospects
Show Comments