Munich-based Scout24 has announced plans to buy back shares worth up to €300 million ($338 million U.S.). The share buy-back program will kick off in September and is expected to be completed within the next 12 months.

In a statement issued Friday, the company said it wants “to enhance long-term value creation for its shareholders.” The buy-back program represents around 6 percent of the existing share capital, based on the current share price. The company’s market value hovers at around $5.8 billion.

Following a failed takeover bid for Scout24 led by Hellman & Friedman and Blackstone in May, the company is keen to optimize its capital allocation. It wants to re-invest into growth opportunities and look at potential acquisitions to boost its market position.

Scout24 is best known for its ImmobilienScout24 property vertical in Germany and its European car classifieds platform AutoScout24. On Friday, CEO Tobias Hartmann said the company wants to streamline these two core verticals as the classifieds market environment continues to consolidate.

“We have demonstrated impressive growth over the past five years, underlined by our strong Q1 2019 results. I am convinced that we can further unlock untapped potential in our two leading online classifieds platforms,” Hartmann said. “My ambition is to make our core verticals ImmobilienScout24 and AutoScout24 the leading market networks and powerhouses in the respective geographies.”

Group revenue for Scout24 rose by 20.6 percent to €148.8 million ($167 million U.S.) during the first quarter of 2019. Scout24 expects low- to mid-teens revenue growth for the 2019 fiscal year.

Print Friendly, PDF & Email

Related Articles