China’s largest classifieds marketplace 58.com on Tuesday announced that it will be purchasing Nasdaq-listed online used automobile dealer Uxin’s B2B car auction business for $105 million in cash.
The agreement covers the assets and liabilities of the business.
The transactions are expected to complete by the first half of 2020, said New York-listed 58.com in a statement. Beijing-based 58.com raised $187 million after the firm sold 11 million shares at $17 apiece in an initial public offering (IPO) in October 2013.
“The purchase of Uxin’s B2B used car auction platform marks another important step in the roll-out of our new ‘all in service’ strategy. Uxin’s auction business directly complements our used car business,” said Michael Yao Jinbo, chairman and CEO of 58.com in the statement.
“We are already a leading B2C player in the industry that generates significant consumer traffic to used car dealers in China. With the addition of Uxin’s B2B auction platform, we can expand the options we can offer dealers.”
Yao said that once the deal is closed, the two parties will join forces to provide more diversified services and integrated solutions to customers, building a more effective used car trading ecosystem.
With a network of over 1,300 service centres across over 250 cities in China, Uxin allows consumers to purchase used cars through an integrated online platform with value-added services including inventory discovery, car inspection, standardized online display, financing and insurance referral, warranty, logistics, and title transfer, among others.
The company operates Uxin Auction, which caters to car dealers and primarily provides them with a comprehensive suite of solutions to source vehicles, optimises their turnover, and facilitates cross-regional transactions. Uxin raised $225 million in an IPO on the Nasdaq in June 2018.
Established in December 2005, 58.com enables local business users and consumer users to connect, share information, and conduct businesses related to job recruitment, real estate, automotive, financial and local life services, among others.
Backed by Chinese internet giant Tencent, 58.com registered revenues of nearly 15.58 billion yuan ($2.21 billion) in 2019, up 18.6 per cent year-on-year. The net income attributable to ordinary shareholders stood at 8.28 billion yuan ($1.17 billion) in 2019, a 314.5 per cent increase from almost 2 billion yuan ($283 million) in fiscal year 2018, shows its latest financial results.