eBay Inc. (Nasdaq: EBAY), a leading global commerce entity, announced a substantial agreement to sell approximately 125 million shares of its stake in Adevinta to investment firm Permira. The deal, estimated at a total consideration of $2.25 billion, represents a notable shift in eBay’s investment portfolio. This transaction is set at an approximate 7% discount to the 10-day volume weighted average price (VWAP) of Adevinta shares as of July 12 and a 5% discount to the 30-day VWAP as of the same date.

Details of the eBay-Permira Transaction

The transaction, expected to close in Q4 2021, hinges on regulatory approvals and will reduce eBay’s ownership stake in Adevinta from 44% to 34%. In addition, eBay has provided Permira with a 30-day option to purchase an additional 10 million shares at the same price, translating to an extra $180 million in consideration. If exercised, this option will further decrease eBay’s stake in Adevinta to 33%.

Strategic Implications of the Deal

This deal with Permira aligns with eBay’s commitment to Austrian regulators to reduce its Adevinta ownership to 33%, a condition set for the approval of the eBay Classifieds Group and Adevinta transaction. The sale introduces Permira, a world-class growth investor, to Adevinta’s shareholder base, while simultaneously delivering value to eBay’s shareholders.

Adevinta’s Global Presence in Online Classifieds

Adevinta is a leading global online classifieds specialist, operating digital marketplaces in 16 countries. With a portfolio spanning over 40 digital brands, the company reaches about one billion people and averages three billion monthly visits. Its top brands include leboncoin in France, mobile.de and eBay Kleinanzeigen in Germany, and Marktplaats in the Netherlands, among others. Adevinta, which spun off from Schibsted ASA and was listed in Oslo in 2019, employs nearly 7,000 people globally.

  Adevinta, eBay, Permira