The acquisition will be staged over two instalments starting next month with an initial $2.9 million payment and the remaining $1.5 million due 12 months later.
Expected to be finalised next month, the deal will give iCar Asia access to Carmudi’s established advertising and lead generation business which services Indonesia car makers and racks up approximately 2 million website hits per month.
It will add to iCar’s current monthly online visits of 6 million, with a “low overlap” of approximately 20% between the audiences of both companies.
It will also give iCar Asia the opportunity to expand its used car business with one of Indonesia’s leading vertical automotive sites Carmudi.co.id.
Carmudi operates five car yards across Indonesia, known as “Carsentros”, which operate as a transaction platform for car dealers and car financiers, and generate finance commission income.
With the combined audience and iCar Asia’s existing new car businesses, the acquisition is expected to create a “powerful advertising platform” for Indonesia’s car industry.
It is also expected to more than double iCar Asia’s revenue from its Indonesian businesses and increase growth rates, with synergies from both businesses speculated to break even in 2020.
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