MotorK Plc announces that it has entered into advanced negotiations for the acquisition of Carflow (“the Company”), an automotive retail solutions provider that serves more than 400 car dealers and major automotive OEMs in Belgium, Netherlands and Luxembourg. Both MotorK and Carflow have signed exclusive and binding agreements and are working towards a swift completion.
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Founded in 2009, Carflow is an established automotive software as a service (“SaaS”) player in the Benelux digital automotive retail market. The Company provides car dealers and manufacturers with a complete suite of digital solutions focused on three areas: 1) automated online sales and conversion processes; 2) lead generation and follow-up; and 3) omnichannel digital showroom capability.
In 2021, the Company reported revenues of c. €3.0 million, achieving double-digit growth on the previous year. Recurring revenues represented c. 75% of this total.
ACQUISITION RATIONALE
The acquisition of Carflow is consistent with MotorK’s strategy to expand its operations into new markets and is in line with previous guidance of 2-3 acquisitions per annum. The Group believes that the deal will leverage the success of the Carflow team and drive additional value for shareholder:
- Enhanced geographic presence: Carflow’s strong brand brings customers from new and growing geographic markets into the enlarged Group, establishing a presence in Belgium, the Netherlands and Luxembourg for the first time
- Creating a regional hub: Carflow’s established presence is anticipated to become the hub for the strategically important Benelux region, completing the Group’s geographic footprint
- Attractive revenue cross-sell opportunities: MotorK’s new digital products can now be introduced across an enlarged customer base to drive additional recurring revenues
- Bringing major OEM brands closer to the Group: The addition of Carflow’s trusted OEM partners (Jaguar, Land Rover, Opel, Hyundai and Subaru) deepens the enlarged Group’s presence in the European market.