Chinese classifieds marketplace platform 58.com said Tuesday that it has agreed to purchase online used vehicle seller Uxin’s business-to-business (B2B) auction platform for $105 million.
The transaction is expected to be completed by the first half of 2020, New York-listed 58.com said in a press release.
“Uxin’s auction business directly complements our used car business,” 58.com's chairman and CEO Michael Yao said in a statement, describing the purchase as an important step by the company to carry out its “all-in-service” strategy.
In a separate press release, Beijing-based Uxin said that after the transaction it will gradually shift focus to business-to-consumer (B2C) sales as part of its plans to expand into the retail market.
The deal with 58.com comes less than a month after Nasdaq-listed Uxin denied reports saying it would temporarily suspend some of its employees from March 1 due to operational difficulties. However, Uxin admitted that it temporarily cut employees’ salaries in order to stabilize its cash flow amid the coronavirus outbreak.
Contact reporter Ding Yi (firstname.lastname@example.org)