Frontier Car Group’s largest shareholder, OLX Autos, has acquired pan-African marketplace Cars45 from the Germany-based auto marketplace group.

Cars45 CEO Ganguly Soumobroto made the announcement at a press briefing in Lagos, but did not disclose any financial details of the acquisition. He also added that the move would contribute to improving Cars45’s corporate governance and management.

“Cars45 is now a more well-structured business and now belongs to a larger group. The nature of the DNA has changed from its start-up or entrepreneurship origin to larger community and improved structure”, he said.

“Businesses have phases, from the founders to another phase which is expansion and that is where we are now to scale up with managers who will spend most time on structuring to meet global demands,’’ Soumobroto added.

Cars45 recently emerged from a reported scandalous internal tumult. Eleven executives at its leading Nigerian subsidiary, including co-founder Mohammed Iyamu, the company’s CFO, Olajide Adamolekun, and VP Commercial, Mayokun Fadeyibi, exited the company simultaneously. 

Cars45 was founded in 2016 and received a $5 million investment from FCG in 2017. OLX Autos became FCG’s largest shareholder after a $400 million investment announcement in November 2019.

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