Fox Business Flash top headlines are here. Check out what’s clicking on FoxBusiness.com.
Ebay Inc has agreed to sell its classified ads business to Norwegian group Adevinta in a deal worth $9.2 billion, creating the world’s largest classifieds group, the companies said on Tuesday.
Continue Reading Below
Ebay will receive $2.5 billion in cash and 540 million shares of Adevinta, making it the largest shareholder with a 44% stake of the pro forma company, they said.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
“Adevinta becomes the largest online classifieds company globally, with a unique portfolio of leading marketplace brands,” Adevinta CEO Rolv Erik Ryssdal said.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| EBAY | EBAY INC. | 58.47 | +0.34 | +0.58% |
| ADEV | n.a. | n.a. | n.a. | n.a. |
The company will have market presence in 20 countries, covering one billion people with three billion visits every month.
“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,” Ryssdal said.
Adevinta was spun out of Nordic media company Schibsted and listed on the Oslo bourse last year.
Its shares jumped 39% on the news after trading that had been halted resumed while Schibsted shares were up 21%.
Adevinta was spun out of Nordic media company Schibsted and listed on the Oslo bourse last year.
It owns brands such as Leboncoin, France’s biggest online classified ads website, Brazil’s OLX and dozens more across Europe, the Americas and North Africa.
The eBay Classifieds Group includes the Gumtree and Kijiji brands, and offers online ads to more than 1,000 cities around the world. The business posted an operating income of $83 million on revenue of $248 million in the first quarter of 2020.
The transaction, which is expected to close by the first quarter of 2021, targets $150-185 million in annual synergies within three years.
CLICK HERE TO READ MORE ON FOX BUSINESS
It will mean Schibsted’s stake in Adevinta falls to about 33% from 59%, Schibsted said separately.
(Reporting by Nerijus Adomaitis; editing by Jason Neely)
