Carsales is banking on continued strength in the South Korean economy after spending $244 million to buy outright ownership of auto-classified business SKEncar.com.
The acquisition, announced on Monday, had been tipped ever since Carsales bought 49.9 per cent of the South Korean company in April 2014 for $126 million.
"It's a bigger market, we like the growth ??? [the South Korean stock market] is up 30 per cent over the last 12 months, the won is up 5 per cent, GDP is running close to 4 per cent and unemployment is [about] 3 per cent," Carsales chief executive Cameron McIntyre said.
The same strong exchange rate has, however, made it more expensive to buy the remaining shares.
Final documentation is likely to be signed before Christmas, meaning the deal is expected to be completed in January 2018.
The deal is still subject to any required regulatory approval and due diligence, as well as there being no adverse changes.???
After this, Carsales will focus on developing IP and tech in the South Korean market, looking to provide products and services in "adjacent marketplaces".
This could include insurances, tyres and other automotive-related products that would complement the car sales core of the business.
It might not be the only expansion it makes. Citi telecom, media and tech analyst David Kaynes said there was "scope to keep investing overseas", in particular pointing to Carsales' 30 per cent holding of Brazil's Webmotors.
Opportunities to boost domestic growth included "adjacencies" and higher price rises for dealers - but without these it would need to look offshore for growth, Mr Kaynes said.
Despite this, he didn't expect any major impact on the company's share price as a result of the acquisition - which opened at $13.58 and closed at $13.55 on Monday.
"[The SK Encar purchase] is relatively small for a company valued at more than $3 billion," he said.
After the acquisition, he expects SK Encar to contribute 10 per cent of revenue in financial year 2019.
"It's a good move ??? there's possibly some upside [in the share price] but it's pretty fairly priced at the moment," he said.
One risk to Carsales' success could be a change in the way people buy and sell used cars, he said.
Increasingly, other major players are eyeing up the lucrative automotive sales space.
In 2017, Facebook began listing cars from automobile dealers through its Marketplace tab - and they quickly became the top-selling item.
It has also partnered with companies like Cars.com, and buyers can contact dealerships using the Messenger app.
But it does not currently allow people to process transactions.
Mr Kaynes said Marketplace was another version of online classifieds - rather than something truly disruptive that could upset the traditional performers.
Mr McIntyre was also "alert but not alarmed" to the social media giant's move into the automotive space.
"Facebook Marketplace has been around for a little while. We've surveyed our consumers ??? and haven't seen any impact so far," he said.
In mid-2017, eBay-owned online classifieds site Gumtree announced Gumtree Cars - a dedicated car-selling portal that at the time was said to rival Carsales.
Georg Chmiel, chairman of iCar Asia Ltd, was also relatively unconcerned about Facebook, noting its platform was not just about marketing cars but closing the transactions offline.
"Purchasing a car depends not just on the availability of cars but also on all the information and services that help you evaluate and make the transaction," he said.
