Apax Partners to Acquire Trader Corporation’s Auto Assets
25 March 2011
Toronto, March 25, 2011
Funds advised by Apax Partners today announced they have entered
a definitive agreement to purchase Trader Corporation ("Trader")
from Yellow Media Inc. (TSX: YLO) for approximately $745M. The
transaction is subject to regulatory approvals and other customary
conditions.
The assets being acquired comprise AutoTrader.ca, Canada's
leading online automotive classified marketplace, and approximately
30% interest in Dealer Dot Com, Inc., the leading digital dealer
marketing service provider in the United States and
Canada.
Mitch Truwit, partner at Apax Partners, said: "This is a very
exciting online opportunity in a sector that Apax knows very well
thanks to our existing investments in Trader Media Group in the UK,
Bankrate in the U.S. and SouFun in China. We will use this
expertise to work with the management of Trader and invest in the
heritage AutoTrader brand to realise its full potential and allow
it to enhance its leadership position. We also look forward
to partnering with the founders of Dealer Dot Com and support the
business on its strong growth trajectory."
Doug Clarke, President at Trader Corporation, said:
"AutoTrader.ca is the leading online car retail site with twice the
used car inventory of our nearest competitor. Customers and dealers
recognise our comprehensive listings, better functionality, serious
car buyers and sellers, and high quality service as the best in
Canada. Apax's financial strength and expertise in the sector
means they can invest in the business and enhance our already
strong operations to extend Trader's leadership position."
Apax was advised by: RBC (M&A), Goodmans LLP and Simpson
Thacher & Bartlett LLP (legal), PricewaterhouseCoopers
(financial and tax), McKinsey & Company (market and
commercial), and Alix Partners (operations).
Since January 2010, Apax Funds have invested in ten growth
companies across four continents in the firm's five core
sectors.
In the same period, Apax Funds have returned to investors €3.3
billion (US$4.7billion) of capital, the largest ever annual amount,
by successfully exiting in whole or in part investments in Tommy
Hilfiger, IFCO, Bezeq, Promethean World, Qualitest Pharmaceuticals,
Spectrum Holding Company and rue21.
About Apax Partners
Apax Partners is one of the world's leading private equity
investment groups. It operates across the United States, Europe and
Asia and has more than 30 years of investing experience. Funds
under the advice and management of Apax Partners globally total
around $40 billion. These Funds provide long-term equity financing
to build and strengthen world-class companies. Apax Partners Funds
invest in companies across its global sectors of Tech &
Telecom, Retail & Consumer, Media, Healthcare and Financial
& Business Services. For more information visit: www.apax.com.
About Yellow Media Inc.
Yellow Media Inc. (TSX: YLO) is Canada's #1 Internet company
through its network of companies that include Yellow Pages Group,
Trader Corporation and Canpages. Yellow Media Inc. owns and
operates some of Canada's leading properties and publications
including Yellow Pages™ directories, YellowPages.ca™,
Canada411.ca™, AutoTrader.ca™, Autos.ca, RedFlagDeals.com, and
LesPAC.com. Its online destinations reach over 11M unique visitors
monthly and its mobile applications for finding local businesses,
deals and vehicles have been downloaded over 2M times. Yellow Media
Inc. is also a leader in national digital advertising through
Mediative, a digital advertising and marketing solutions provider
to national agencies and advertisers. For more information, visit
www.ypg.com.
For further information, please contact:
Apax Partners
Ben Harding
Tel. +44 (0)20 7872 6401
Email: ben.harding@apax.com
Todd Fogarty
Tel: +1 212 521 4854
Email: todd-fogarty@kekst.com