- With the acquisition of eBay Classifieds Group, Adevinta becomes the largest online classifieds company globally;
- The scale provided by this partnership is expected to create estimated annual synergies of $150 million – $185 million within the next three years;
- The transaction is expected to be closed by Q1 of 2021.
As anticipated by The Wall Street Journal and reported by LABS on Monday, eBay officially sold its classified-ads unit to the Norwegian Adevinta, a classified business publisher that runs online marketplaces across Latin America and Europe, for $9.2 billion.
As part of the transaction, eBay will receive $2.5 billion in cash and approximately 540 million Adevinta shares which would represent an equity stake of approximately 44% based on the number of Adevinta’s outstanding shares, as of the end of the second quarter, and a 33.3% voting stake, according to a statement on eBay’s investor’s page.
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“We are pleased we reached an agreement with Adevinta that brings together two great companies,” said Jamie Iannone, eBay’s Chief Executive Officer, in the statement. “eBay believes strongly in the power of community and connections between people, which has been essential to our Classifieds businesses globally. This sale creates short-term and long-term value for shareholders and customers while allowing us to participate in the future potential of the Classifieds business.”
Adevinta currently operates in 15 countries, with a portfolio of 35 digital products and websites such as the Brazilian marketplace OLX and the Mexican Segundamano. eBay’s Classifieds business platforms, in its turn, operate in the United States, Mexico, Canada, Europe, Africa, and Australia.
According to eBay, these complementary businesses will have solid market positions in 20 countries, and eBay will become the largest Adevinta shareholder. The scale provided by this partnership is expected to create estimated annual synergies of $150 million – $185 million within the next three years.
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With the acquisition of eBay Classifieds Group, Adevinta becomes the largest online classifieds company globally, with a unique portfolio of leading marketplace brands. We believe the combination of the two companies, with their complementary businesses, creates one of the most exciting and compelling equity stories in the online classifieds sector
Rolv Erik Ryssdal, CEO of Adevinta.
The sale is subject to regulatory approvals, customary closing conditions, including approval by the affirmative vote of holders of at least two-thirds of the votes cast as well as of the share capital of Adevinta ordinary shares represented in person or by proxy at an extraordinary general meeting of the stockholders of Adevinta, and consultation with works councils, other employee representation bodies or employees where and to the extent required by applicable law.
The transaction is expected to be closed by the first quarter of 2021.
