carsales.com has just acquired a big network of auto classifieds sites in Latin America

Taxi drivers in Buenos Aires protesting Uber ride share services. Juan Mabromata/AFP/Getty Images

Australian-based carsales.com is creating, in a $6.7 million acquisition, the number one online automotive classifieds network in Latin America.

The company is buying the DeMotores online automotive classified websites in Argentina, Colombia and Chile, from S.A. La Nacion, one of Argentina’s largest media companies.

“The inclusion of DeMotores with carsales’ existing investments in Brazil, Mexico and Chile makes us the number one online automotive classifieds network operating across the Latin American region,” says Paul Barlow, carsales director international.

The carsales.com network. Supplied.

“This investment further capitalises on our work rolling out a Spanish language version of our world-class technology in Mexico and Chile and helps us continue to benefit from economies of scale in Latin America.”

carsales.com also has 30% of WebMotors, 65%of soloautos, the owner of autologia, and 83% of Chileautos 83%.

The company says the acquisition provides carsales with a significant growth opportunity in Spanish speaking Latin America.

Senior management will be retained across the DeMotores businesses.

The purchase is being funded from existing cash reserves and syndicated debt facilities.

Revenue at carsales.com was up 10% in 2016 to $344 million and net profit of $109 million, up 6%.

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