(MENAFN- ProactiveInvestors - Australia) iCar Asia (ASX: ICQ) is aiming to become Malaysia's number one website for people looking to buy or sell new or used cars with the acquisition of LiveLifeDrive.com.
LiveLifeDrive.com is Malaysia's fastest growing automotive website with a 400% increase through 2012 to 272,000 visitors to the website in November.
The website provides extensive coverage and reviews of new cars in Malaysia.
iCar Asia will add the website to its portfolio via the acquisition of owner and operator, DQBP Sdn Bhd, for up to 6.5 million Malaysian ringgit (A$2.04 million).
The staged consideration will be settled via a combination of cash and shares.
The first 1.7 million Malaysian ringgit is payable on completion of a Sale and Purchase Agreement and will be comprised of 600,000 Malaysian ringgit in cash and 1.1 million Malaysian ringgit in iCar Asia shares.
A further 1.8 million Malaysian ringgit will be payable 18 months from that date in equal parts cash and iCar Asia shares.
The balance of a potential 3 million Malaysian ringgit relates to nonâ€guaranteed, performanceâ€based payments and will be split evenly between cash and shares.
iCar Asia owns and operates ASEAN's No. 1 network of car classifieds and content websites, reaching 1.5 million people every month.
The acquisition of LiveLifeDrive.com will combine with the company's classifieds website, Carlist.my, with the end goal to become the clear number one website in Malaysia for people looking to buy or sell new or used cars.
In iCar's targeted markets, vehicle ownership levels are growing strongly â€" around 5.5% per annum in Malaysia, 5.2% per annum in Thailand and 11.3% per annum in Indonesia.
New passenger car sales are also growing strongly, driven by rising wealth levels and government stimulation of the automotive sectors in each country.
Overall automotive advertising expenditure is expected to increase significantly in Malaysia, Thailand and Indonesia, with an increasing proportion of this expenditure to move to online media.
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