eBay has agreed to acquire Cox Automotive Media Solutions, which owns automotive platforms CarsGuide.com.au and Autotrader.com.au.
Subject to deal close, the two consumer brands will join the Gumtree Australia business, a part of the eBay Classifieds Group (eCG) portfolio. Together, Autotrader.com.au, which has about 2,300 dealers and approximately 90,000 listings, and Gumtree, which has approximately 1,800 dealers and about 80,000 private-party listings, provide a compelling car-buying offering and enable Gumtree to develop a more competitive and attractive platform for Australian consumers.
“This acquisition is an important part of eBay Classifieds Group’s verticalization strategy in the automotive market, following our successful acquisition of Motors.co.uk in the United Kingdom earlier this year. Gumtree is already an established player in the Australian private sales market, and the addition of CarsGuide.com.au and Autotrader.com.au will make our offerings even more compelling by giving Australian consumers and dealers more reach and choice in market,” said eBay Classifieds Group SVP and general manager Alessandro Coppo.
Gumtree Australia head of motors Richard Dicello added: “This acquisition will strengthen our position in the automotive market by providing consumers with access to thousands of additional listings, automotive research, reviews and content, as well as a strong dealer tool and car buying destination. Together with Gumtree Australia, these brands create a robust customer experience in auto buying — from research to purchase.”
Cox Automotive Australia CEO Rob Whiten said: “For Cox Automotive Australia, it will enable us to focus on our broader strategy of building upon our strengths in the wholesale arena and support dealers, OEMs, fleet/lease and retail customers in changing and challenging market conditions. The decision is also in line with other international markets where Cox Automotive is strengthening its focus on wholesale markets and providing connected retail experiences.
The transaction is subject to regulatory approvals in Australia and other closing conditions. It is expected to close in Q2 2020.