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Mumbai-based used car platform CarTrade said it will acquire a 100% stake in OLX India's auto business in an all-cash deal worth Rs 537 crore.
"CarTrade Tech Limited (the “Company”) has entered into a share purchase agreement with M/s Sobek Auto India Private Limited (“Sobek”), and its holding company OLX India B.V. for the acquisition of 100% stake of Sobek from OLX India B.V. subject to completion of certain conditions and on the terms and conditions agreed between the parties in the share purchase agreement," the company said in an exchange filing.
It's worth noting that CarTrade had Rs 1,185 crore cash and cash equivalents on its books on a standalone basis.
OLX is part of Prosus, a Dutch investment company. A while back, Prosus announced they were selling off OLX's car-related business worldwide.
“The acquisition is in furtherance of the strategic objectives of the company to undertake investments which provide synergistic benefits to the existing businesses of the CarTrade Tech,” the company said in the stock exchange filing.
As part of the deal, The company also notified that Sobek has entered into an Intellectual Property License Agreement and a Transitional Support Agreement for the use of certain brands and technology.
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