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Deal to expand accident replacement vehicle offering
Eclipx will expand the offering of new and used accident replacement vehicles to ‘not at fault drivers’ with the acquisition of Right2Drive Pty Ltd.
Melissa Coade
Firms: Clifford Chance (Right2Drive Pty Ltd); Herbert Smith Freehills (Eclipx Group Ltd)
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Deal: Eclipx has entered into an agreement to acquire 100 per cent of the share capital of Right2Drive for net consideration of $67 million.
Value: $67 million
Area: M&A/Banking and finance
Key players: Clifford Chance partner Lance Sacks led the team advising Right2Drive. He was assisted by counsel Joni Henry and associate Charles Wehbe.
Deal significance: Right2Drive is an accident vehicle replacement company, operating in 16 locations across Australia and New Zealand. Its fleet size has grown to 1,300 vehicles since 2012.
Eclipx Group Limited is a leading provider of fleet and equipment leasing and management, and vehicle rental to corporate, SME and consumers in Australia and New Zealand.
Shareholders of Right2Drive were advised on the proposed acquisition by Eclipx for net consideration of $67 million.
In a statement released by Eclipx, CEO Doc Klotz described Right2Drive as a promising venture operating in a "high-growth and underpenetrated market".
"This is an exciting, synergistic and strategic acquisition providing Eclipx with a platform to expand into the medium-term vehicle rental segment providing new and used accident replacement vehicles to 'not at fault' drivers," Mr Klotz said.
Clifford Chance partner Lance Sacks said the firm's role in advising shareholders in the deal reflected a commitment to Australia’s start-up culture.
"We are pleased to continue our commitment to the new start-up culture of business in Australia. This deal facilities the sale of a business with exponential growth to a more established model," Mr Sacks said.
As at 31 March 2016, Eclipx managed or financed 92,355 vehicles across Australia and New Zealand under five primary brand names, FleetPartners, FleetPlus, CarLoans.com.au, FleetChoice and AutoSelect.
