Carsales.com.au has acquired the automotive classified websites of DeMotores in Argentina, Colombia and Chile in a AU$6.7 million deal that extends the Australian company's presence in the Latin American market.
The sale is for 100 per cent of DeMotores' businesses, which were owned by an entity controlled by S.A. La Nacion, a news media group based in Argentina.
Carsales.com.au's cloud-based platform, which was built in Melbourne, will be implemented in the Latin American locations.
“There are great options in terms of IP, technology, apps and development,” Carsales spokesperson, Will Clarke, told CIO Australia.
“We are moving all our businesses (where we own the majority) to our cloud based platform. This will mean that the Spanish language version of the platform we built here in Melbourne will be rolled out. It is already in Mexico and Chile, and will now be rolled into Argentina, Colombia and the other Chilean businesses,” Clarke said.
“We are doing a lot more development for the LatAm market here and our product and technology team are doing the work here in Australia.”
The purchase of DeMotores follows Carsales' move last year to take majority stakes in Mexico-based auto-classifieds businesses SoloAutos and Chile's largest online auto advertisements website, Chileautos.
“The inclusion of DeMotores with Carsales’ existing investments in Brazil, Mexico and Chile makes us the number one online automotive classifieds network operating across the Latin American region,” said Carsales director, international, Paul Barlow.
“This investment further capitalises on our work rolling out a Spanish language version of our world-class technology in Mexico and Chile and helps us continue to benefit from economies of scale in Latin America.”
According to Carsales, the Argentinean market is attractive from an investment point of view as the country continues its positive transition under its new President, as well as Argentina having both high GDP per capita and population relative to the region.
In 2016 new car sales in Argentina increased by over 10 per cent when compared to 2015, and together, new and used passenger vehicle sales achieved a volume of around 2.2 million.
“We believe the number one position in the Argentinean online auto vertical market is still contested. This acquisition provides Carsales with a significant presence in one of the most attractive markets in the region,” said company CEO Greg Roebuck.
“The acquisition also cements Chileautos’ clear number one position in Chile through the combination of the number one and two assets and creates an opportunity for manufacturers, advertisers and investors to access the number one network of automotive classifieds sites operating across Latin America.”