iCar Asia to acquire Carmudi Indonesia for US$3mil

• To be finalized Oct 2019, deal will strengthen market position
• iCar group still on track for EBITDA break even by the end of 2019

Australia Securities Exchange (ASX) listed, iCar Asia Limited (iCar Asia), which runs an ASEAN network of automotive portals in Malaysia, Thailand and Indonesia, today announced it had entered into a binding agreement to acquire Carmudi Indonesia.

The acquisition is subject to finalising long form documents and is expected to be completed on or about 15 Oct 2019. The purchase price is US$3 million (A$4.4 million) and will be paid from cash reserves in two payments, US$2 million (A$2.9 million) on completion and US$1 million (A$1.5 million) on 15 Oct 2020.

Carmudi Indonesia has a well-established advertising and lead generation business servicing leading car manufacturers in Indonesia, with its website enjoying approximately 2 million visits per month. The Kuala Lumpur headquartered iCar Asia currently has almost 6 million visits per month, and there is a low overlap of the audiences of approximately 20% according to Similarweb.

With this combined audience and iCar Asia’s existing new car businesses, this is expected to create an even more powerful advertising platform for the Indonesian automotive industry. 

The acquisition will also give iCar Asia the opportunity to expand its market-leading used car business with Indonesia’s #2 vertical automotive site, Carmudi.co.id. 

Carmudi also operates five physical car sales centres, called Carsentros. These are a transaction platform for car dealers and leading car financing businesses, and generate finance commission income. The five centres operate across the cities of Semarang, Solo, Surabaya and Yogyakarta.

The combined Indonesian business is expected to more than double iCar Asia Indonesian revenue and increase growth rates, with synergies expected to result in the combined businesses breaking even in 2020. The group is still on track for EBITDA break even by the end of 2019. Last month it announced 1H 2019 resutls with A$6.01 million in revenue (first half of 2018: A$5.01 million) for a year on year growth of 20% with all three countries of operations registering positive growth in the period.

“We are delighted to have Carmudi Indonesia join iCar Asia and further strengthen our position in the Indonesian market in both the new and used car segments. This acquisition furthers our vision of being the platform that people turn to in order solve all their automotive needs,” says Hamish Stone, iCar Asia's chief executive officer.