CARNEXT acquired by CONSTELLATION AUTOMOTIVE
Context
The acquisition of CarNext by Constellation Automotive Group creates a leading European digital used car marketplace, selling more than 2.5 million cars annually for a Gross Merchandise Value of €21bn. The combination of CarNext and Constellation expands the group's vertically integrated C2B, B2B, and B2C marketplace model across seven major European countries, allowing the group to reach unmatched scale. The addition of CarNext's proprietary data analytics and historic European used car transaction data will give Constellation an edge in terms of data and technology excellence. The deal is expected to further boost Constellation's growth across the UK and continental Europe, and comes after the combined group raised more than €2bn this year. The acquisition will allow Constellation to combine the scale of its respective marketplaces to lead the digital transformation of the used car market across Europe.
CARNEXT, which reported an EBITDA margin of LOGIN in 2021, is valued in this transaction at an EV/EBITDA multiple of LOGIN, a level to compare with the average currently observed in the TMT (Tech, Media, Telecom) sector (14.8x).
Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.
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Target
CarNext is a leading B2B and B2C digital used car sales marketplace present across 22 European geographies. The company operates a digital B2B auction platform and a B2C marketplace, selling annualized volumes of 40,000 cars in 2021 via its B2C digital marketplace and 210,000 cars via its digital B2B auction platform. CarNext benefits from a long-term supply agreement for 250,000 high-quality used cars annually from LeasePlan, one of the world’s largest car leasing companies, to sell through its B2C and B2B marketplaces. The company's digital B2B auction platform operates in 22 countries across a network of buying partners, while its B2C marketplace is already present in seven of the largest markets across Europe. CarNext's business model is focused on allowing customers to find, finance, buy or sell a used car entirely online from a place they can trust, with a focus on data and technology excellence to drive innovation and growth.
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Historical Financials (GBP)
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REFERENCES
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Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).
Acquirer: constellation automotive