Hellman & Friedman makes $1.8b bid for NZ online marketplace

The private equity firm is willing to pay NZ$6.45 per share for the company, challenging an offer of NZ$6.40 per share made by Apax Partners last month. Trade Me jumped 16% following disclosure of the Apax offer and the stock was trading around NZ$6.00 before reaching NZ$6.23 on December 5 in response to Hellman & Friedman's expression of interest.

According to a release, Apax is undertaking due diligence on an exclusive basis, but this exclusivity is subject to a provision that allows Trade Me to engage with third parties on unsolicited proposals. The Trade Me board has confirmed that it will engage with Hellman & Friedman.

Founded in 1999, Trade Me operates a classified advertising and online retail platform that also offers services in online dating, employment, travel, and accommodation. It has posted more than one billion listings to date. In 2016, it launched a courier booking service.

Revenue during the 2017 financial year improved 6.6% to NZ$250.4 million, while profit rose 3.9% to NZ$96.6 million. Chairman David Kirk described the performance as a "new record," citing strong growth in the classifieds business across its property, automotive, and jobs verticals.

Hellman & Friedman claims to have invested in more than 80 companies since 1984. It is currently investing its eighth fund, which closed at $10.9 billion in 2014. Focus sectors include software, digital and traditional media, financial services, marketing services, energy, industrials, and healthcare. 

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• Topics
• Australasia
• Consumer
• Buyouts
• Technology
• New Zealand
• e-commerce
• TMT
• Hellman & Friedman
• Apax Partners