TORONTO, March 25, 2011 /PRNewswire/ -- Funds advised by Apax Partners today announced they have entered a definitive agreement to purchase Trader Corporation ("Trader") from Yellow Media Inc. (TSX: YLO) for approximately $745M. The transaction is subject to regulatory approvals and other customary conditions.
The assets being acquired comprise AutoTrader.ca, Canada's leading online automotive classified marketplace, and approximately 30% interest in Dealer Dot Com, Inc., the leading digital dealer marketing service provider in the United States and Canada.
Mitch Truwit, partner at Apax Partners, said: "This is a very exciting online opportunity in a sector that Apax knows very well thanks to our existing investments in Trader Media Group in the UK, Bankrate in the U.S. and SouFun in China. We will use this expertise to work with the management of Trader and invest in the heritage AutoTrader brand to realise its full potential and allow it to enhance its leadership position. We also look forward to partnering with the founders of Dealer Dot Com and support the business on its strong growth trajectory."
Doug Clarke, President at Trader Corporation, said: "AutoTrader.ca is the leading online car retail site with twice the used car inventory of our nearest competitor. Customers and dealers recognise our comprehensive listings, better functionality, serious car buyers and sellers, and high quality service as the best in Canada. Apax's financial strength and expertise in the sector means they can invest in the business and enhance our already strong operations to extend Trader's leadership position."
Apax was advised by: RBC (M&A), Goodmans LLP and Simpson Thacher & Bartlett LLP (legal), PricewaterhouseCoopers (financial and tax), McKinsey & Company (market and commercial), and Alix Partners (operations).
Since January 2010, Apax Funds have invested in ten growth companies across four continents in the firm's five core sectors.
In the same period, Apax Funds have returned to investors euro 3.3 billion (US$4.7billion) of capital, the largest ever annual amount, by successfully exiting in whole or in part investments in Tommy Hilfiger, IFCO, Bezeq, Promethean World, Qualitest Pharmaceuticals, Spectrum Holding Company and rue21.
About Apax Partners
Apax Partners is one of the world's leading private equity investment groups. It operates across the United States, Europe and Asia and has more than 30 years of investing experience. Funds under the advice and management of Apax Partners globally total around $40 billion. These Funds provide long-term equity financing to build and strengthen world-class companies. Apax Partners Funds invest in companies across its global sectors of Tech & Telecom, Retail & Consumer, Media, Healthcare and Financial & Business Services. For more information visit: www.apax.com.
About Yellow Media Inc.
Yellow Media Inc. (TSX: YLO) is Canada's #1 Internet company through its network of companies that include Yellow Pages Group, Trader Corporation and Canpages.
Yellow Media Inc. owns and operates some of Canada's leading properties and publications including Yellow Pages™ directories, YellowPages.ca™, Canada411.ca™, AutoTrader.ca™, Autos.ca, RedFlagDeals.com, and LesPAC.com. Its online destinations reach over 11M unique visitors monthly and its mobile applications for finding local businesses, deals and vehicles have been downloaded over 2M times. Yellow Media Inc. is also a leader in national digital advertising through Mediative, a digital advertising and marketing solutions provider to national agencies and advertisers. For more information, visit www.ypg.com.
SOURCE Apax Partners