SPH Acquires SgCarMart for $48 Million

Willis Wee
12:38 pm on Apr 2, 2013

sgcarmart

Yesterday Singapore Press Holdings (SPH) announced that it has acquired SgCarMart.com, a popular online classified site for cars in Singapore for SGD 60 million (US$48 million).

According to SGE, the valuation is a 12 times multiple of SgCarMart.com’s 2012 revenue and the site has over 90 percent market share in Singapore in terms of online vehicle classifieds. SgCarMart was founded by Henry Seah, Tan Jing Lun, and Vincent Tan in 2004.

SPH has been on a spree shopping for potential online sites to boost its business. Last month, the group also invested in Chope, a fast growing restaurant booking site in Singapore.


Replies
  • old

    Good deal for the industry. A genuine profit making site sold for a good multiple. Wonder how SPH will integrate them. And to help readers analyze the deal …

    Max of $60M means there is a progressive payment tied to some KPI over the next 1,2,3 years. Usually 2. Also, there are 5 individual shareholders but it is 3 of them who have about about 16% each. Other 2 are smaller and corporate investor owns 40%. Good deal for the 3 guys. aged 32 and prob paid 50 or 60%. The other parts based on next few years…. that is how companies tie people to continue after sale.

    Depending on targets, it is possible (like shareinvestor or HWZ, that the final figure is 10 or 20% lower or worse if business flounders. It can also be higher if they outperform though by saying 60M max… very likely that is highest already.

    Best exit so far?? Rare is the case like HGW which is all cash up front. definitely HGW. Highest multiple of revenue on such low revenue. And to get the right scale for readers… regionally Propertyguru and reebonz are the ones to watch moving forward.

  • Mok Li

    Great deal I think. Next one up is propertyguru!

  • Bernard F

    The next frontier is the medical sector. Lots of medical portals popping up hoping to cash out later but majority are not medical insiders …

  • Rick

    $60M?!? What about creating a copy cat site for $1-2M, and paying $10M to get agents, sellers onsite??!

    This looks more like a monopolistic buyout, by incompetent scholars led corporate.

  • old

    well.. depends on team set… 12M to invest a new start up car site if manned by really good people may work since SG only has 1 real car site. But the problem is always in the good people. Good people want real money. Paying well is one way ala iProp, iCarasia, another way is to give stakes. Assume it takes 5 years to make it work, a good mgmt team will cost about 800K per year for 3 pax. That is about 4M gone, another 20 pax or so will cost about 2M per year. And that is before marketing which is another 3M or so over 5 years. So total cost is about 15-20M to spend. And no guarantee of success.

    SPH by paying at most 25 times profit (if KPI not hit, can be lower like 20times or even 15 times depending on agreement details). So that is ranging 35 to 60M for a sure success… mathematics works out to me if strategically i want to win the space for sure.

Read More