Trade Me sells insurance business to its former owner
Trade Me has sold its LifeDirect business for an undisclosed amount to former owner Mark Solomon as the online marketplace said it didn’t fit with Trade Me’s priorities.
Transfer of ownership of the insurance business will occur on April 1.
Trade Me CEO Anders Skoe said LifeDirect, which the company bought in 2013, was a great business with lots of potential but didn’t fit with Trade Me’s plans.
“We don’t think Trade Me is the best long term owner for LifeDirect,” Skoe said. “It’s a profitable business with great growth potential but we only have so many resources and we can’t prioritise LifeDirect over the many other opportunities we have.”
Skoe said selling the business to Solomon was the best decision to take as he is already familiar with the business and already knows the industry well.
“It feels like a very natural fit for it to return to them,” he said.
Skoe said they are now ironing out plans with Solomon for a smooth transition.
“Mark has indicated that he wants to keep the expertise of the LifeDirect team as they look to take the business forward. We’re working through this with him now.”
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