The Eclipx Group Ltd (ASX: ECX) share price rose 20.6% today after making an announcement.
Eclipx is one of Australia’s largest providers of fleet, equipment leasing & management, vehicle rentals and online auction services to businesses and consumers in Australia and New Zealand. At 31 March 2019 it managed or financed 117,669 vehicles with $2.5 billion of assets under management (AUM).
Eclipx’s Exciting News
Eclipix announced that it is selling both GraysOnline and AreYouSelling to Quadrant Private Equity for $60 million, representing an EV/EBITDA valuation of 7.5x using the 12-month EBITDA (click here to learn what EBITDA means) to March 2019.
The transaction includes a distribution arrangement allowing Eclipx to continue to benefit from using Grays Auto as one of its channels for disposing end of lease vehicles.
The transaction is expected to complete by the end of July 2019 and the funds will be used to reduce Eclipx debt, but will result in an accounting loss of $100 million.
The company also announced that it has appointed Jason Muhs as acting Chief Financial Officer.
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