Auto Trader has completed its acquisition of new car leasing marketplace Autorama in a deal which could be worth up to £200m.
The Manchester-headquartered group completed deal for an initial consideration of £150m while an additional £50m has been deferred "subject to customary performance conditions" in a year's time.
Autorama has created a digital platform which aggregates leasing deals from multiple funders and OEMs under its Vanarama brand.
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Auto Trader said the deal will allow it to "establish itself as a leading marketplace for leasing new cars which is set to benefit from the growth of electric cars, new manufacturers entering the UK market, lower take up of company car schemes and a shift towards new digital distribution models".
In a statement issued to the London Stock Exchange, chief executive Nathan Coe said: "We are pleased to have completed the acquisition of Autorama, which will transform our leasing proposition and help us meet growing consumer demand to lease, rather than own, new cars.
"The combination of Auto Trader's large consumer audience with Autorama's digital platform and operational capability complements our strategy to bring more of the car buying journey online."
Autorama chief executive Andy Alderson added: "We are hugely excited about the prospect of being able to accelerate our growth plans and deliver even more value to our partners as part of the Auto Trader Group."
Auto Trader said it expects Autorama to contribute between £18m and £21m in net revenues during the remaining nine months of its financial year but make an operating loss of between £5m and £7m.
