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!


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



The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments