eBay to sell classifieds business to Adevinta for $9.2bn

US e-commerce company eBay has agreed to sell its classifieds business to Norwegian online marketplace Adevinta in a cash-cum-stock deal valued about $9.2 billion.

Adevinta, which is an online classifieds specialist, currently operates across 15 countries, with a portfolio comprising 35 digital products and websites.

eBay’s classifieds platforms include a collection of 12 brands across 13 countries.

Adevinta will continue to partner with eBay in key areas post-closing of the deal for ensuring a seamless transition. The scale offered by their partnership is likely to generate estimated annual synergies of $150-185 million within the next three years.

Jamie Iannone – CEO of eBay said: “We are pleased we reached an agreement with Adevinta that brings together two great companies.

“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.”

eBay to divest its classifieds business to Adevinta for $9.2bn. Coolcaesar/Wikipedia.org.

As part of the deal, eBay will be paid $2.5 billion in cash and issued nearly 540 million shares of Adevinta, which would represent an equity stake of around 44%, making the US firm the largest shareholder in the Norwegian company.

Rolv Erik Ryssdal – CEO of Adevinta said: “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.

“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.”

The deal, which is subject to regulatory approvals, customary closing conditions, which include approval by Adevinta’s shareholders, is likely to be closed by Q1 2021.