Trade Me sells Treat Me after two-year experimentMarch 7 - 12pm
Online auction site Trade Me, which is on the prowl for more acquisitions, has sold its group-buying Treat Me website for an undisclosed sum in a management buyout.
The Wellington-based company expects to complete the sale to a consortium led by Treat Me head James Macavoy in the next month, two years after launching the website, it said in a statement.
The terms of the sale are confidential, and the price isn’t considered material to Trade Me.
“We’ve not been able to give Treat Me sufficient oxygen, mainly because of the bigger opportunities ahead of us in the core areas of our business,” chief executive Jon Macdonald said.
“We routinely review our portfolio and look at what we should invest in or sell down.”
Last month Trade Me said it plans to keep investing in new growth opportunities this year and will likely made additions to its portfolio.
The shares increased 0.2 percent to $4.90, and have gained 25 percent this year.
Treat Me offers vouchers providing discounts on local services, provided enough people sign up to the deal. The site has sold more than 1.1 million vouchers since its launch in March 2011.