CL8 Holdings Merges Carly with Carbar, Retains Stake and Eyes New Growth
CL8 Holdings has completed a strategic merger of its Carly car subscription business with Carbar Holdings, combining two of Australia’s leading platforms. The company retains a stake in the merged entity and plans to pursue fresh growth opportunities while streamlining operations.
- CL8 sold Carly’s operating entities to Carbar in a share purchase agreement
- Merger unites two major Australian car subscription platforms
- CL8 retains shares in Carbar, the merged group’s head company
- Company to remain ASX-listed and seek new growth avenues
- Cash from the transaction used to support operations and reduce overheads
Strategic Merger of Car Subscription Leaders
On 1 May 2025, CL8 Holdings Limited (ASX: CL8) finalized a significant merger by selling its Carly car subscription business to Carbar Holdings Pty Ltd. This transaction merges two of Australia's pioneering and largest car subscription platforms, marking a notable consolidation in the automotive subscription sector.
The deal involved the sale of all shares in Carly’s operating entities, Carly Car Subscription Pty Ltd, OneX Operations Pty Ltd, and ElevenX Operations Pty Ltd, to Carbar. In return, CL8 secured a shareholding in Carbar, which will serve as the head company of the newly merged group. This structure allows CL8 to maintain exposure to the combined entity’s future growth potential.
Shareholder Approval and Corporate Strategy
The merger was approved by CL8 shareholders at the company’s 2024 Annual General Meeting held on 16 April 2025, reflecting investor support for the strategic direction. CL8’s leadership, under Chairman Adrian Bunter, has signaled a clear intent to remain listed on the ASX and leverage the cash proceeds from the transaction to fund ongoing operations.
In parallel, CL8 has taken steps to reduce overheads to align with its current market capitalisation and operational focus. This prudent cost management suggests a disciplined approach as the company explores new avenues for growth beyond the car subscription business it has divested.
Implications for the Car Subscription Market
The merger consolidates two key players in a rapidly evolving segment of the automotive industry, potentially creating a more robust competitor with greater scale and resources. For customers, this could mean enhanced service offerings and broader vehicle access. For investors, the combined entity may offer improved operational efficiencies and market positioning.
Meanwhile, CL8’s retention of shares in Carbar positions it to benefit from any upside in the merged platform’s performance, while freeing itself to pursue other strategic initiatives. The company’s next moves will be closely watched as it seeks to redefine its growth trajectory in a competitive market.
Bottom Line?
CL8’s merger with Carbar reshapes its future, balancing retained upside with a leaner, opportunity-focused structure.
Questions in the middle?
- What specific growth opportunities is CL8 targeting post-merger?
- How will Carbar integrate Carly’s operations to drive value creation?
- What financial terms underpin CL8’s shareholding in Carbar and expected returns?