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  • iCar Asia will acquire car classified site Carmudi Indonesia for US$3 million
  • The US$3 million will be paid in cash in two transactions
  • This deal will create a powerful advertising platform in the Indonesian automotive industry
  • The acquisition will be finalised by mid-October

iCar Asia will purchase car classified site Carmudi Indonesia for US$3 million.

The US$3 million will be paid in cash in two transactions. The first payment of US$2 million will be paid on completion of the acquisition and the final US$1 million on October 15, 2020.

iCar Asia is an automotive company, with headquarters in Kuala Lumpur. It’s focused on developing and operating leading automotive portals in Malaysia, Indonesia and Thailand.

The company owns and operates ASEAN which is the number one network of automotive portals. iCar believes it has the potential to connect more than 600 million car buyers and sellers.

The website network has more than 8 million visits from car buyers and enthusiasts each month.

Carmudi Indonesia is a well established advertising and lead generation business, servicing leading car manufactures in Indonesia. Its website gets approximately two million visits per month.

With the combined audiences from the websites, according to the company this is expected to create an even more powerful advertising platform for the Indonesian Automotive Industry.

The acquisition will also give iCar Asia the opportunity to expand its market-leading used car business with Indonesia’s second most popular vertical automotive site, Carmudi.co.id.

Carmudi also operates five car sales centres in Semarang, Solo, Surabaya and Yogyakarta. The car centres are called Carsentros.

iCar Asia CEO Hamish Stone says this acquisition will further strengthen its position in the Indonesian market.

“We are delighted to have Carmudi Indonesia join iCar Asia and further strengthen our position in the Indonesian market in both the New and Used Car segments,” he said.

“This acquisition furthers our vision of being the platform that people turn to in order solve all their automotive needs.”

This deal is expected to double iCars Indonesia business revenues and increase growth rates.

The acquisition is expected to be finalised on October 15, 2019.

iCar shares have gained 8.33 per cent on the ASX this morning, with shares selling at $0.26 apiece at 11:43 am AEST.

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