We are writing to advise you about an important change to the competitive landscape in the internet lead management space and across related dealer support services.
The existing Carsguide.com.au joint venture between around thirty of our members and News Limited is being replaced under a Scheme of Arrangement. The Scheme has received ASIC and Court approval and is moving into the final shareholder approval stage which is expected to be completed in December.
The net effect of the Scheme will see an injection of $20 million in new equity (including an expansion of the number of participating dealer investors to about sixty), the exit of News Limited from the joint venture and a majority position in the newly reconstituted joint venture by Cox Communications.
Aside from bringing their considerable global expertise into the joint venture, Cox Communications will also merge its existing Australian businesses Manheim Auto Auctions, Dealer Solutions and other intellectual property into the new entity in the form of Cox Automotive Australia.
The AADA Board of Directors has authorised the following statement as part of the overall announcements being made by Cox Automotive Australia and Carsguide.com.au in connection with the new venture.
David Blackhall, the Chief Executive Officer of the Australian Automotive Dealer Association said…
“By investing in this new company dealers have demonstrated their commitment to the benefits that flow from increased competition. The combined resources, infrastructure and technology of Cox Automotive Australia and its parent company offer dealers a new world class choice of service providers across all aspects of their automotive retailing, wholesaling, advertising and servicing needs – and of course, consumers will be the ultimate beneficiaries.”
Please contact either me or AADA Chairman of Directors Terry Keating if you require further information.
David Blackhall CEO
M: +61 413 007 833
E: [email protected]
Terry Keating Chairman
M: +61 418 668 277
E: [email protected]