Ebay has sold its classified ads business unit in a deal that will create the world’s largest online classifieds company.
The online auction pioneer announced it has entered into a definitive agreement to sell its Classified Group to Norway’s Adevinta ASA for $9.2 billion in cash and stock. The deal will make eBay the largest shareholder of Adevinta, a global online classifieds specialist, operating digital marketplaces in 15 countries.
The deal will allow eBay to concentrate on its core marketplace business. The company has been under pressure from activist investors to sell its non-core assets. In November, it sold its StubHub unit to Viagogo, a Swiss online ticket marketplace, for $4.05 billion
“We are pleased we reached an agreement with Adevinta that brings together two great companies,” said Jamie Iannone, CEO, eBay Inc. “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.”
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Adevinta is a global online classifieds specialist, currently operating in 15 countries, with a portfolio that spans 35 digital products and websites. eBay’s Classifieds platforms include a collection of 12 brands in 13 countries around the world. Together the two businesses will have solid market positions in 20 countries globally.
Adevinta and eBay will continue to partner in key areas post-closing to ensure a seamless transition. Additionally, the scale provided by this partnership is expected to create estimated annual synergies of $150 to $185 million within the next three years.
“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,” said Rolv Erik Ryssdal, CEO of Adevinta. “We have been impressed with eBay Classifieds Group’s achievements in recent years, leading across markets with nationally recognized brands including Mobile.de, Gumtree, Marktplaats, dba, Bilbasen, Kijiji, 2dehands, 2ememain, Vivanuncios, Automobile.it, Motors.co.uk, Autotrader (Australia), Carsguide (Australia), and eBay Kleinanzeigen, and innovating consistently across its product portfolio and advertising technology platform.”
Adevinta is majority owned by Schibsted ASA, which has agreed to vote in favor of the transaction. The transaction is expected to close by the first quarter of 2021.
Source: Chain Storeage