Thoma Bravo-owned Trader Corporation, which provides automotive dealer software and operates Canadian automotive marketplace AutoTrader.ca, has agreed to be sold to European firm AutoScout24 for an undisclosed amount.
Munich, Germany-based AutoScout24, which owns and operates various online automotive marketplaces across Europe, said in a statement that purchasing the Toronto-based company will extend its presence outside of Europe and expand its service offerings into automotive dealer software and lender solutions. AutoScout24’s majority shareholder, San Francisco-based private equity firm Hellman & Friedman, will make a “meaningful equity investment” in AutoScout24 in conjunction with the deal.
Thoma Bravo purchased Trader from Apax Partners in 2016 for nearly $1.6 billion CAD. This past June, Bloomberg reported that Thoma Bravo was exploring the possibility of a Trader sale, and that Trader could be valued at $4 billion CAD, including debt.
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Trader, which was founded in 1975 as a magazine for auto classifieds, said that Thoma Bravo worked with Trader to expand its product portfolio through organic investments and strategic acquisitions. Some of its offerings include automotive dealer software solution AutoSync and automotive finance subsidiary Dealertrack, which it acquired in 2022.
Trader also recently acquired Collateral Management Solutions (CMS) for an undisclosed amount back in June. CMS provides lien and registration services, recovery services, and insolvency management solutions to Canadian lenders and was expected to improve Dealertrack.
“Through the application of our software expertise and M&A strategy, we helped transform Trader from an online automotive marketplace to a market leading platform of digital retail solutions for consumers and automotive dealers in Canada,” Thoma Bravo managing partner Holden Spaht said in a statement. “We are confident that AutoScout24 is a great home for Trader, and we look forward to following their continued success together.”
The transaction is expected to close in the fourth quarter of 2024, according to Trader.
