SAN JOSE, Calif., July 23, 2020– Adevinta acquire eCommerce company eBay’s classified ad business for $9.2 billion in a cash and stock deal.
As part of the transaction, eBay will receive $2.5 billion in cash and approximately 540 million Adevinta shares which would represent an equity stake of approximately 44% based on the number of Adevinta’s outstanding shares, as of the end of the second quarter, and a ~33.3% voting stake.
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.
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 these complementary businesses will have solid market positions in 20 countries globally, and eBay will become the largest Adevinta shareholder.
Adevinta and eBay will create estimated annual synergies of $150-185 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.
“This deal is a testament to the growth and potential of the eBay Classifieds business,” said Alessandro Coppo, SVP, and GM, eBay Classifieds Group. “We are excited for our local classifieds brands to join Adevinta and shape a global leader in an industry full of potential.”
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, Schibsted has entered into an agreement with Adevinta to acquire eBay Classifieds’ Danish entity and therefore leading marketplaces in Denmark, DBA.dk and Bilbasen.dk, once the transaction between eBay and Adevinta closes.
Blommenholm Industrier AS, which holds approximately 6.3% of Adevinta’s ordinary shares, has also agreed to vote in favor of the transaction.
Following the closing of the transaction, each of eBay and Schibsted will be entitled to designate two directors to the Adevinta board of directors so long as it holds at least 25% of the Adevinta ordinary shares, and one director so long as it holds at least 10% of the Adevinta ordinary shares. eBay’s equity stake at closing will consist of approximately 33% of Adevinta’s ordinary shares, with the remainder of its stake consisting of non-voting shares.