Online shopping pioneer eBay has sold its classifieds business, including the secondhand selling platform Gumtree, to Adevinta, a major player in the secondhand marketplace space with digital platforms in 15 countries.
The agreement, announced on Tuesday, will see Adevinta become the largest online classifieds business in the world and eBay become its largest shareholder, with 44 per cent ownership and an approximately 33 per cent voting stake.
In addition to 540 million Adevinta shares, eBay will receive US$2.5 billion in cash in exchange for 12 classifieds brands operating in 13 countries. They include:
- Autotrader (automotive classifieds in Australia)
- Bilbasen (online vehicle marketplace in Denmark)
- Carsguide (automotive editorial site in Australia)
- Dba (classifieds site in Denmark)
- 2dehands and 2ememain (classifieds site in Belgium)
- eBay Kleinanzeigen (classifieds site in Germany)
- Gumtree (classifieds site in Australia, the UK, Singapore, South Africa, Ireland and Poland)
- Kijiji (classifieds site in Canada and Italy)
- Marketplaats (classifieds site in the Netherlands)
- Mobile.de and Automobile.it (online vehicle marketplaces in Germany and Italy)
- Motors.co.uk (car search site in the UK)
- Vivanuncios (classifieds site in Mexico)
Following the acquisition, Adevinta will have solid market positions in 20 countries globally and the two companies expect to realise between US$150 million and US$185 million in annual synergies within three years.
“We are pleased we reached an agreement with Adevinta that brings together two great companies,” Jamie Iannone, eBay’s CEO, said in a statement.
Alessandro Coppo, SVP and GM of eBay’s Classifieds Group said the deal is testament to the growth and potential of the company’s classifieds business.
“We are excited for our local classifieds brands to join Adevinta and shape a global leader in an industry full of potential.”
The sale is subject to regulatory approvals and customary closing conditions, including approval by stockholders of Adevinta, and consultation with competent works councils, other employee representation bodies or employees, where required.
The transaction is expected to close by the first quarter of 2021.
Adevinta is majority owned by Schibsted ASA, which has agreed to vote in favor of the transaction.
Related to the transaction, Shibsted has has entered into an agreement with Adevinta to acquire eBay’s classifieds entity in Denmark, including leading Danish marketplaces DBA.dk and Bilbasen.dk, once the transaction between eBay and Adevinta closes.
Blommenholm Industrier AS, which holds approximately 6.3 per cent of Adevinta’s ordinary shares, has also agreed to vote in favour of the transaction.