SPH buyout nets big windfall for ex-NUS buddies
Public-listed media company Singapore Press Holdings (SPH) has agreed to purchase online car portal sgCarMart (SGCM) in a deal that could be worth up to S$60 million.
Both The Straits Times and The Business Times reported on Tuesday that the deal includes SGCM’s online vehicle classified site, car auction platform, online marketing site as well as a service provider for car loans, insurance and settlement services.
The site was founded in 2004 by friends Vincent Tan, Tan Jin-glun and Seah Hon Hui, when they were engineering students at the National University of Singapore. They are now all 32 years old.
Originally a car classifieds service, sgCarMart now also provides car loans, insurance and valuation services.
According to the site, it has about 10,000 car listings and attracts over 2.2 million visitors every month.
SPH said the final price is dependent on performance targets and will be paid in cash.
In an interview with The Straits Times, Mr Vincent Tan said he believed that the deal can help his company “grow in breadth and in depth”.
The three founders will continue to work for the site after the acquisition.
Meanwhile, SPH chief executive Alan Chan said there will be synergies between sgCarMart and SPH’s own ST701 online classified verticals.
He added, “the acquisition will add to the breadth of SPH’s online classified portfolio” and “SPH will have new income streams.”
Last November, SPH relaunched online classified vertical ST701 Cars as STCars, to provide an improved buy-sell-rent platform for motorists and dealers.
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