SPH agrees to buy over sgCarMart for $60 million

The takeover will allow SPH to buy all of sgCarMart's issued shares as well as its subsidiary Quotz - an online auction platform. The final price is based upon performance targets and will be paid in cash.

The acquisition will also see SPH to own 45 percent of online marketing portal Conversion Hub Marketing and 30 percent of SCMC - a service provider for car loan, insurance and settlement services. Conversion Hub Marketing and SCMC are both associate companies of sgCarMart.

sgCarMart started as an online classifieds website that eventually rose to become a one-stop website for anything related to the local automotive industry - including information on car loans, valuation and insurance. The website also houses a motor workshop directory, editorial content and a car forum.

sgCarMart has about 10,000 listings, and draws more than 2.5 million visitors who make about 30 million page views each month. sgCarMart posted a net profit of $2.3 million on a revenue of $5.5 million for its 2011 fiscal year. 

sgCarMart was founded by three friends back in 2004 - Vincent Tan, Tan Jinglun and Seah Hon Hui - when they were students at the National University of Singapore. The trio, now 32 years of age, will continue their duties at sgCarMart after the acquisition.

Alan Chan, Chief Executive of SPH, cited there will be collaborations between sgCarMart and SPH's own ST701 online classifieds platforms.

Besides the three founders, one of sgCarMart's shareholders include JDB Investment.