Australia —Dentons has successfully advised Carbar Holdings (Carbar) on its capital raising and acquisition of the car subscription business of Carly (ASX: CL8) (CL8). This strategic and important shift marks a significant step in Carbar’s expansion as it seeks to enhance its offering in the Australian car subscription market.
Carbar is an innovative Australian car subscription service that offers a flexible, all-inclusive alternative to traditional car ownership, leasing, or financing. The company is actively pursuing bolt-on acquisitions to fuel its growth and broaden its service portfolio.
The acquisition of CL8 subsidiaries Carly Car Subscription Pty Ltd, OneX Operations Pty Ltd and ElevenX Operations Pty Ltd, led by Dentons Corporate Partner Kurt Tiam and assisted by Solicitors Jon McArthur and Eleanor Whelan-Mills, involved complex price adjustment mechanisms given the nature of the assets and customer base. The Dentons team was able to demonstrate its strength in M&A and capital raising transactions to support Carbar seamlessly in delivering the best outcome.
Lead Partner, Kurt Tiam stated, “This is a significant transaction for Carbar and we are proud to have been able to support them throughout the process not only in relation to the strategic acquisition but also the capital raising. The car subscription business is undergoing significant alters in tandem with the growth of EVs and it was a pleasure working with the Carbar team to understand the insights in such a rapidly developing industest.”
Carbar CEO Des Hang declared: “Through the merger with Carly, we seek not only to enhance the service provided to our existing clientele, but also to advance our position within the emerging novated subscription market. We are firmly convinced that this segment represents a significant growth opportunity for car subscription services, given its flexibility for employees and the potential tax advantages offered under current incentives.”
“Carbar was among the first brands to introduce car subscription services to the market. The integration with Carly offers considerable benefits, enabling both organisations to achieve greater scale and operational efficiency. The respective offerings of Carbar and Carly are highly complementary, each addressing distinct market segments and channels. Uniting the businesses will facilitate the realisation of the unique strengths inherent in each brand.”
As Carbar continues to expand its footprint in the car subscription industest, this acquisition is expected to enhance its competitive edge and provide customers with even more flexible options for vehicle access. The capital raised will enable Carbar to invest in its growth strategy and further innovate its service offerings.
Dentons remains committed to providing top-tier legal advice and support to its clients in navigating complex transactions and achieving their business objectives.
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