Trade Me to buy rental property website Viewing Tracker
It has entered into an agreement to buy the 18-month old, one man outfit, which is expected to be completed before Christmas.
Trade Me [NZX: TME], the online auction site, has agreed to buy rental property website Viewing Tracker for an undisclosed sum, which it says is not material to its business.
The Wellington-based company has entered into an agreement to buy the 18-month old, one man outfit, which is expected to be completed before Christmas, it said in a statement. The purchase is fully cash funded, and the price is confidential, but not material, it said. Wellington-based Viewing Tracker's founder Aaron Clancy will join Trade Me as part of the deal.
"We want to increase the value we add and make the user experience on Trade Me Property better for both property managers and tenants," head of Trade Me Property Nigel Jeffries said. "Aaron's a smart guy with lots of knowledge around property management and rentals, and we're looking forward to having his nous on board."
Trade Me has been beefing up its offering as it looks to grow its revenue streams, and has previously warned earnings would be subdued in the coming year as it reinvests back into the business.
The company spent $23.5 million on business acquisitions and a further $9.4 million on intangible assets and $4.1 million on property, plant and equipment in the year ended June 30, ending the financial year with $41.7 million in cash and equivalents. Of its $200 million bank facility, the company had drawn down $165.8 million as at June 30.
The shares fell 0.5 percent to $3.73, and have dropped 7.6 percent this year. The stock is rated an average 'hold' based on nine analyst recommendations compiled by Reuters, with a median target price of $3.80.
(BusinessDesk)
Paul McBeth
Tue, 09 Dec 2014
Tue, 09 Dec 2014
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Trade Me to buy rental property website Viewing Tracker
43812